1 00:00:00,01 --> 00:00:05,51 Everybody ready. My name is Patrick Higgins some mystery the home of 2 00:00:05,52 --> 00:00:12,33 a recreation conservation with. My colleague Mike Wilson and I was responsible for 3 00:00:12,34 --> 00:00:16,38 this meeting having catalyze this committee's of anything goes wrong blame it on my 4 00:00:17,21 --> 00:00:24,02 heart. I'm really pleased to see this talented group here and the 5 00:00:24,12 --> 00:00:29,29 parties this is an economic development committee of the whole big party recreation 6 00:00:29,30 --> 00:00:35,30 of conservation. And stimulation of offspring nurse economic development 7 00:00:35,31 --> 00:00:40,52 specialists elected officials some representatives and labor and what we want to do 8 00:00:40,53 --> 00:00:47,50 is we want to identify economic development opportunities around humble and well 9 00:00:47,51 --> 00:00:52,65 harmed district has been traditionally involved in economic development largely 10 00:00:52,74 --> 00:00:58,54 relating to the port and harbor infrastructure and that of course is this subject 11 00:00:58,55 --> 00:01:04,64 of this evening's meeting. We will also be exploring more globally other ever 12 00:01:04,74 --> 00:01:05,53 opportunities as 13 00:01:05,54 --> 00:01:10,38 a matter of fact every opportunity how which should this committee wishes to bring 14 00:01:10,38 --> 00:01:17,06 . Forward so. Business and 15 00:01:17,07 --> 00:01:22,96 Economic Development. Is kind of better it's sort of people have idea as they bring 16 00:01:22,97 --> 00:01:25,36 together the capital they see 17 00:01:25,37 --> 00:01:31,31 a market niche and then it's organic it works ha I've been in business myself 18 00:01:31,32 --> 00:01:34,32 a number of modes and hide it it actually interests me 19 00:01:34,33 --> 00:01:40,54 a great. I like to have this approach just go you know the Harvard district were 20 00:01:40,55 --> 00:01:46,39 elected and so out tomorrow night here at the harbor district meeting I know it's 21 00:01:46,40 --> 00:01:51,79 political but I think that it doesn't serve us in this forum out to be overly 22 00:01:51,80 --> 00:01:58,70 political Let us some bring forward ideas let us bring you know. You 23 00:01:58,71 --> 00:02:02,78 know the inspiration that you. Feel for the various ideas and opportunities around 24 00:02:02,79 --> 00:02:04,86 the base but also let's look at things in 25 00:02:04,87 --> 00:02:10,22 a business sense and let us convince one another with substance because that in 26 00:02:10,23 --> 00:02:16,00 fact is is what will move us forward and so and I also I like to have 27 00:02:16,01 --> 00:02:20,47 a little fun so let's let's try to keep the light it doesn't have to be serious and 28 00:02:20,82 --> 00:02:24,80 the only thing I won't be serious about is the time and we will not run past nine 29 00:02:24,81 --> 00:02:31,58 o'clock ever that's it if there's things that need to be done outside that you can 30 00:02:31,59 --> 00:02:36,77 form subcommittees award your work groups or calendar them for future agendas I 31 00:02:36,78 --> 00:02:41,35 don't want to stifle discussions but I think if we go on too long then some of us 32 00:02:41,36 --> 00:02:48,34 will. Be less willing to continue their patients the same. So. 33 00:02:52,05 --> 00:02:52,57 I want to do 34 00:02:52,58 --> 00:02:56,89 a little bit of housekeeping before we introduce ourselves or actually I tell you 35 00:02:56,90 --> 00:03:00,75 what. Can we just around quickly for just 36 00:03:00,76 --> 00:03:06,60 a couple minutes each and if you can interview for self and say. What it is you 37 00:03:06,61 --> 00:03:11,15 represent and why you think you know why are you here what are you going to and I 38 00:03:11,16 --> 00:03:17,94 do I really want to see us try that cannot be around and. I think we have the 39 00:03:17,95 --> 00:03:24,23 intellectual capital and that we can form the monetary capital. But we have to make 40 00:03:24,40 --> 00:03:26,20 come some better agreements as 41 00:03:26,21 --> 00:03:31,26 a community on some things because we're small in numbers and so if any of what we 42 00:03:31,27 --> 00:03:35,60 intend to leverage as capital is from the government we have to be pretty united as 43 00:03:35,61 --> 00:03:40,75 one hundred twenty thousand people. You know one one neighbor in San Francisco has 44 00:03:40,76 --> 00:03:45,00 more people than we do but when we are united we have political clout and to some 45 00:03:45,01 --> 00:03:49,48 degree our economic fortunes are nearly there are really two three on 46 00:03:49,49 --> 00:03:55,50 a path for economic development so that's one How might you get ten minutes in part 47 00:03:56,00 --> 00:04:00,65 over that he has the Go Ahead This is just go around I'm just. In the city 48 00:04:00,66 --> 00:04:06,09 a man named Mike Wilson the district commissioner from Earth from the Third 49 00:04:06,10 --> 00:04:07,13 Division which is basically 50 00:04:07,14 --> 00:04:13,91 a kid in North Bay You know I really putting this workshop together or be 51 00:04:14,02 --> 00:04:16,96 I think I'm calling me really and it's really more of a workshop or 52 00:04:16,97 --> 00:04:22,90 a series of workshops by which folks can both the landowners and business people 53 00:04:22,91 --> 00:04:27,21 and community members and from various stakeholders and then discuss the options 54 00:04:27,22 --> 00:04:31,64 around how will they and the nexus between not just the day as they should beings 55 00:04:31,65 --> 00:04:34,00 own but the nexus between that and is 56 00:04:34,01 --> 00:04:38,84 a business community and what are the opportunities that surround that and so 57 00:04:38,85 --> 00:04:45,00 that's really why I got this thing going and I'm just going to. The most you know 58 00:04:45,01 --> 00:04:46,71 me I'm David hole I'm the C.E.O. 59 00:04:46,72 --> 00:04:52,18 Of the district. I'm also Moisi for. You never with 60 00:04:52,22 --> 00:04:59,13 a moment on this. Day Fire the only record of. What he Murphy humble 61 00:04:59,14 --> 00:05:05,69 before Fox the homework for Fox off the planet. Really gives Kerry national there 62 00:05:05,70 --> 00:05:11,72 if this is our. Mike Mike Buttner trails trust 63 00:05:11,73 --> 00:05:17,52 a whole day and also in most of your week of open space perch and Recreation 64 00:05:17,53 --> 00:05:24,11 Commission. The third class Eureka city council. Jacqueline du tumble 65 00:05:24,12 --> 00:05:30,89 County Economic Development. Branch that are better go. Travis natter 66 00:05:30,90 --> 00:05:36,69 Pacific affiliate started off. A great Gardner hundred one Things to Do and Eureka 67 00:05:36,70 --> 00:05:43,62 Chamber of Commerce. JR there with the Chamber of Commerce. He forged in the area 68 00:05:43,63 --> 00:05:47,95 referendum electrical workers union and secretary treasurer of the Building 69 00:05:48,01 --> 00:05:54,16 Construction Trades Council I will be the work. And they Miss Farrow spawn and I'm 70 00:05:54,17 --> 00:06:00,75 just here is an observer and I'm doing subcontract work for. I'm Don 71 00:06:00,76 --> 00:06:05,39 Leinert I'm sitting in for Peter your Tonight pass director of the county 72 00:06:05,49 --> 00:06:11,40 convention spill. In the community development director for the city orchid of. 73 00:06:13,08 --> 00:06:16,75 Our DANNHAUSER I'm also here because people aren't true call me and so he's going 74 00:06:16,76 --> 00:06:21,89 to be other town. That I don't know me and actually between her daughter and I both 75 00:06:21,90 --> 00:06:28,22 will talk less than the other and the what forty years' experience practical 76 00:06:28,23 --> 00:06:35,07 economic development. I'm working to develop environmental technology 77 00:06:35,08 --> 00:06:40,19 the house the project Eureka possibly the smoko. 78 00:06:42,46 --> 00:06:48,34 Richard killers. And I think 79 00:06:49,35 --> 00:06:54,36 Todd that her who is the author of protect Kiper deserves special mention says put 80 00:06:54,37 --> 00:06:55,87 together under fire. 81 00:07:06,47 --> 00:07:11,51 Well actually the reason I gave how special mention is she is actually an alternate 82 00:07:12,11 --> 00:07:18,10 and if it's OK with the audience. That's my time 83 00:07:19,07 --> 00:07:24,34 I'm sorry I just don't I think we have enough business that you're here. During the 84 00:07:24,35 --> 00:07:31,28 course of the. So. Wednesday seems to 85 00:07:31,29 --> 00:07:37,83 be the night that works and other nights are either jammed or impractical. And 86 00:07:37,84 --> 00:07:43,89 so what is the committee's pleasure. Is it Wednesdays and I think from 87 00:07:43,93 --> 00:07:50,12 a poll of everyone that I call Wednesday is probably it by default and that you 88 00:07:50,13 --> 00:07:55,56 Wednesdays it seems to work are the last wednesday or the fourth Wednesday the 89 00:07:55,57 --> 00:08:02,38 fourth Wednesday is more consistent but the last wednesday is an. No 90 00:08:03,07 --> 00:08:08,23 night for that nice for the meeting this is our last Wednesday the month of K. 91 00:08:08,23 --> 00:08:14,92 . Our. Tonight how are we doing shipping and harbor 92 00:08:14,93 --> 00:08:21,80 infrastructure. Meeting will be on my the industry. And the reactor of 93 00:08:21,81 --> 00:08:22,15 R.K. 94 00:08:22,16 --> 00:08:26,66 That has offered to help me put that together what Mike and I would like to do 95 00:08:26,67 --> 00:08:30,97 a stimulate involvement of those people who fought in these various sectors to help 96 00:08:31,42 --> 00:08:35,16 put together the forums because neither he nor I are either 97 00:08:35,17 --> 00:08:40,46 a nurse or expert and so the quality of these forms to some degree with him and 98 00:08:40,47 --> 00:08:45,78 your participation. And your willingness in the phone when the phone calls that I 99 00:08:45,79 --> 00:08:48,12 have made to you I has been 100 00:08:48,70 --> 00:08:54,98 a big energy boost to us so light industry in June. Tourism and 101 00:08:55,32 --> 00:09:01,02 economic development related to it is July people wonder has offered to help with 102 00:09:01,03 --> 00:09:07,14 that or is your lighting one coming he's running the off the magazine so he was 103 00:09:07,15 --> 00:09:10,71 going to be coming in soon and he runs the Marine or the maritime museum so he'll 104 00:09:10,72 --> 00:09:15,92 be helping with that but others of you know tourism is large enough to where maybe 105 00:09:16,70 --> 00:09:22,34 it's more than one meaning our obvious we are projecting to do our recreational 106 00:09:22,35 --> 00:09:25,90 infrastructure and what economic development benefits that might have for the 107 00:09:25,91 --> 00:09:26,46 community 108 00:09:27,05 --> 00:09:31,60 a September of fisheries and hop culture to take Kiper has been an enormous help 109 00:09:32,01 --> 00:09:38,48 and that actually has some really practical advice and I think. Our mission here is 110 00:09:39,22 --> 00:09:44,10 find out who's interested in developing business around the bay find out what 111 00:09:44,11 --> 00:09:48,59 passed to attainment there are find out what impediments there might be and also 112 00:09:48,60 --> 00:09:53,34 how things might work together then how can the harbor district or the governmental 113 00:09:53,35 --> 00:09:58,34 entities we do something. And I thought that was good guidance so I just said OK 114 00:09:58,52 --> 00:10:05,12 that's what we're doing. And that's. September fisheries and opera culture 115 00:10:05,44 --> 00:10:09,88 as I get into that deeper I'm not sure that that's one cluster Those are both very 116 00:10:09,89 --> 00:10:13,95 very well developed business sectors and there are many facets to them. 117 00:10:16,75 --> 00:10:20,98 And then you know restoration of the bay actually creates jobs and other long term 118 00:10:20,99 --> 00:10:26,40 benefits in terms of the productivity of the bay and we have one of the most you 119 00:10:26,41 --> 00:10:33,35 know developed recreational. Countries that I know of we have lots and lots of 120 00:10:33,36 --> 00:10:40,07 people who are helping with that and then. I look to see if 121 00:10:40,08 --> 00:10:44,70 prosperity clusters in the other ones like agriculture but I don't think they apply 122 00:10:45,25 --> 00:10:50,21 and so I would open it up now if there are other suggestions in terms of the things 123 00:10:50,22 --> 00:10:56,15 that we need to cover. People suggested I'll turn it of energy as something that we 124 00:10:56,16 --> 00:11:01,01 might look at independently and we might convert under light industry but my quick 125 00:11:01,12 --> 00:11:07,74 take from those who are contacted It doesn't seem that it's him or you know what 126 00:11:07,75 --> 00:11:12,93 may be something that's the other thing I'd like to talk about and that is. We need 127 00:11:12,94 --> 00:11:15,14 to look at what's practical and available to 128 00:11:15,15 --> 00:11:21,52 a short term and then some things maybe mid term opportunities but those are the 129 00:11:21,53 --> 00:11:25,53 two that I like are committed to focus on things that could happen in 130 00:11:25,54 --> 00:11:31,13 a five year when we start going out can are fifteen. Some of those some of the 131 00:11:31,14 --> 00:11:37,47 things that we had to start to make take that long to develop but. I let's just 132 00:11:37,48 --> 00:11:43,51 make something and you know so that is. I'm not going to take 133 00:11:43,52 --> 00:11:49,55 a more time or some Let's. Does anybody else have anything else to contribute or 134 00:11:49,56 --> 00:11:55,90 any agenda considerations before how we perceive. And three. 135 00:12:00,13 --> 00:12:07,09 Well you know I think I think if we. When we get to the end of the season i'll 136 00:12:07,38 --> 00:12:14,25 i think or actually you're right. Does anybody have any ideas terms 137 00:12:14,26 --> 00:12:20,88 of what additional meetings that we should have or comments on the. The meetings 138 00:12:20,89 --> 00:12:25,56 that. We're considering at this point which are only five in number. 139 00:12:29,10 --> 00:12:29,43 You know like. 140 00:12:40,28 --> 00:12:47,02 When you. Went something 141 00:12:47,14 --> 00:12:51,68 like. Hydrogen powered ships I think it's 142 00:12:51,69 --> 00:12:56,87 a great idea it's probably inevitable but the technology is just in beta testing 143 00:12:57,25 --> 00:13:01,47 and so on and while these may be being developed on a one on 144 00:13:01,48 --> 00:13:05,60 a prototype basis somewhere around the world they're not imminent as something that 145 00:13:05,61 --> 00:13:12,35 we could start to practically develop on an industrial scale for job creation. And 146 00:13:12,36 --> 00:13:19,32 you know. Not only do we have entrepreneurs and we also have you know 147 00:13:19,72 --> 00:13:25,42 we have dreamers and I would like to not pursue things that are utopian but not 148 00:13:25,43 --> 00:13:31,20 practical and I guess the litmus test really Mike is. Is there indications that 149 00:13:31,21 --> 00:13:35,46 there's going to be an economic trend that favors the business you know things like 150 00:13:35,83 --> 00:13:39,19 driven by gas prices gas prices are probably going to go up and when he grew to 151 00:13:39,20 --> 00:13:44,10 that OK Some businesses are going to flourish when gas prices go up the probably 152 00:13:44,11 --> 00:13:51,04 a pretty good bet. But. Other than other business prospects you know 153 00:13:51,05 --> 00:13:52,99 some other which. It's kind of 154 00:13:53,00 --> 00:13:58,93 a show me deal. Show me market trends and show me the potential for capital 155 00:13:58,94 --> 00:14:04,78 formation and steps to attainment and then we're going to all get excited but when 156 00:14:04,79 --> 00:14:06,20 you have a gleam in your eye and you have 157 00:14:06,21 --> 00:14:10,92 a dream. But you don't have any tangible steps to attain or any hope of 158 00:14:10,93 --> 00:14:16,36 capitalization in the near term. Jacqueline Novogratz. 159 00:14:23,42 --> 00:14:29,40 Outcomes Well you know there's an array of outcomes I'd like to see. The lowest on 160 00:14:29,41 --> 00:14:33,63 the totem pole of that outcome of this committee would be that it's an opportunity 161 00:14:33,64 --> 00:14:39,25 for the business folks both landowners and and the business people and Me members 162 00:14:39,66 --> 00:14:45,11 to have a venue to basically discuss these various clusters you know in 163 00:14:45,12 --> 00:14:51,94 a forum by which if the very least they come to this is even outside the office or 164 00:14:52,65 --> 00:14:57,16 especially outside the office of this organisation that there is one connections 165 00:14:57,17 --> 00:14:58,33 made a synergy where 166 00:14:58,41 --> 00:15:02,15 a business is started and people actually start moving forward on something that's 167 00:15:02,23 --> 00:15:06,10 really what I would you know that's the least of what we can do on 168 00:15:06,11 --> 00:15:08,94 a group on kind of like the larger scale in a kind of get into 169 00:15:08,95 --> 00:15:15,44 a little bit here is that you know humble Bay is is actually quite large 170 00:15:15,64 --> 00:15:22,16 relative to you know relative to some other industrial port facilities 171 00:15:22,59 --> 00:15:28,13 you know if you look at the the Port of Oakland is about nine hundred acres and 172 00:15:28,14 --> 00:15:31,78 about five miles of industrial waterfront Hummel Bay about four and 173 00:15:31,79 --> 00:15:35,85 a half miles of industrial waterfront in one thousand nine hundred acres of coastal 174 00:15:35,94 --> 00:15:42,65 and industrially zoned land. Often we're told and I think fairly much believe in 175 00:15:42,66 --> 00:15:47,62 this community that we won't be the Port of Oakland So the question is with that 176 00:15:47,71 --> 00:15:54,48 kind of land mass and that kind of waterfront what can we be how can our 177 00:15:54,49 --> 00:15:59,85 business community be how creative can we get in terms of zoning how creative can 178 00:15:59,86 --> 00:16:05,32 we yet in terms of the opportunities with regards to. Energy and in terms of why 179 00:16:05,33 --> 00:16:10,92 can we get access to energy. And freshwater and those sorts of things and Natural 180 00:16:10,93 --> 00:16:17,04 Resources What is it that we really can pull together and. Read 181 00:16:17,88 --> 00:16:23,53 Is that the day when he you re in and you know in in the past there you know there 182 00:16:23,54 --> 00:16:24,97 really has been kind of 183 00:16:24,98 --> 00:16:31,09 a delineation in terms of the process by which our district tends to Unlike other 184 00:16:31,10 --> 00:16:35,54 government agencies they tend to sort of have fiefdoms and mine right and there 185 00:16:35,55 --> 00:16:36,12 hasn't been 186 00:16:36,13 --> 00:16:41,43 a lot of interaction between the district in the county and other agencies and 187 00:16:41,47 --> 00:16:46,84 economic to the reader and the other groups that are around what they really see 188 00:16:47,18 --> 00:16:48,45 the home of a as a as 189 00:16:48,46 --> 00:16:52,54 a value outside of kind of the path that we've been taking for the last hundred 190 00:16:52,65 --> 00:16:56,21 years and so now's our opportunity to really take 191 00:16:56,22 --> 00:17:00,50 a look around are there fundamental changes that we can make and sort of open our 192 00:17:00,51 --> 00:17:00,78 eyes 193 00:17:00,79 --> 00:17:05,44 a little bit and see what we can do and that's the goal of this the outcome there's 194 00:17:05,45 --> 00:17:12,44 not I don't expect there to be any formal report but you know if if our board can 195 00:17:12,45 --> 00:17:18,15 look at the videos of these things and in the community go through this then maybe 196 00:17:18,16 --> 00:17:21,76 at the end of this process which is not very long you know we're only talking five 197 00:17:21,77 --> 00:17:23,37 months and five meetings we're not talking 198 00:17:23,38 --> 00:17:28,59 a lot of time invested Did anything fall out the other end that was of value I'm 199 00:17:28,60 --> 00:17:34,03 hoping that there is but I am. I want to make sure that the investment is not so 200 00:17:34,04 --> 00:17:38,94 great the expectations are really high and wants to you know try to see where we 201 00:17:38,95 --> 00:17:41,86 get and hopefully we'll get something positive you know. 202 00:17:48,73 --> 00:17:52,10 We've. Been getting feedback when we see it 203 00:17:52,22 --> 00:17:58,13 a lot of pieces in that it's really. Mean I think. 204 00:17:59,30 --> 00:18:05,29 Is the answer and I think probably we should do is actually post the proposed is 205 00:18:05,30 --> 00:18:08,86 actually a win for him and. It's all right there it has 206 00:18:09,10 --> 00:18:14,04 a pilot we'll put them with say the latest move on our website where all of 207 00:18:14,28 --> 00:18:18,60 anything that's presented in any of the meeting will be put on to the website so 208 00:18:18,61 --> 00:18:25,29 that you can view them later. Yes will be there and certainly an answer today of 209 00:18:25,30 --> 00:18:31,65 like what good would a cluster to look at. Is not required and they become 210 00:18:31,66 --> 00:18:32,82 a month or two months from now that's 211 00:18:32,83 --> 00:18:40,42 a good idea great. Great. Thank 212 00:18:40,43 --> 00:18:46,15 you Pat. Although I understand the desire to have everything relatively short term 213 00:18:46,74 --> 00:18:50,58 because you want to see the immediate benefit I would hope that we could maybe 214 00:18:50,59 --> 00:18:55,19 expand that five year model that you talked about out to at least ten if not 215 00:18:55,20 --> 00:18:57,87 fifteen years because if you are 216 00:18:57,88 --> 00:19:01,79 a visionary you still need to find capital go through permitting and do everything 217 00:19:01,80 --> 00:19:06,59 else and it's not possible to get that done five years so I hope that we can do we 218 00:19:06,60 --> 00:19:11,61 can expand that five year term and and look at economic opportunities that will be 219 00:19:11,62 --> 00:19:16,14 beneficial in the not only for us but for our children's children. Why I think I 220 00:19:16,15 --> 00:19:20,36 think you're right Grigg in that for instance wave energy I went to the meeting the 221 00:19:20,37 --> 00:19:21,95 other night it's five years in 222 00:19:21,96 --> 00:19:27,30 a pilot phase and then it'll be another probably five years to full development in 223 00:19:27,31 --> 00:19:34,31 the event that it's feasible and environmentally. You know without impediments up 224 00:19:34,32 --> 00:19:39,51 Pete go ahead. Going to make um and I think this is great to pull this group 225 00:19:39,52 --> 00:19:42,72 together tonight and it seems to me that this really should be 226 00:19:42,73 --> 00:19:47,23 a standing committee of the district I know this is five months as kind of 227 00:19:47,24 --> 00:19:54,12 a pilot. I'm noticing the lack of environmental representation around the table and 228 00:19:54,47 --> 00:20:01,21 hoping that maybe in the future that could change. The makeup and 229 00:20:02,05 --> 00:20:06,98 you know any any development does have some environmental impacts but just curious 230 00:20:06,99 --> 00:20:12,05 about that. Our meetings are public and anyone's invited to attend and. 231 00:20:15,68 --> 00:20:22,46 We selected for businesspeople entrepreneurs economic development types. And we 232 00:20:22,47 --> 00:20:28,94 have eighteen which is pretty good committee. To additional representation 233 00:20:29,84 --> 00:20:32,11 members of the committee can feel free to appoint 234 00:20:32,12 --> 00:20:33,69 a representative who can be traveling 235 00:20:33,70 --> 00:20:39,14 a lot. We really selected for. 236 00:20:40,75 --> 00:20:46,33 A creative mix for business development. And that you know I think Lou are you an 237 00:20:46,34 --> 00:20:49,41 environmentalist I think Lou my qualify J. 238 00:20:50,17 --> 00:20:53,55 Yeah I saw it as a as we go forward of this process of going to think about 239 00:20:53,56 --> 00:20:57,93 a whole lot of things we may not know right now and to keep those options open in 240 00:20:57,94 --> 00:21:03,90 terms of representation as well as other issues or our ideas may arise that I think 241 00:21:03,91 --> 00:21:06,96 would be ill served if we try to lock down a thing other than just 242 00:21:06,97 --> 00:21:11,72 a framework here tonight. Just you know well and you know I don't think it's the 243 00:21:11,73 --> 00:21:14,34 nature of business that you know you can't put a lightning bug in 244 00:21:14,35 --> 00:21:18,97 a jar and keep it for very long I mean business happens and it's but also one of 245 00:21:18,98 --> 00:21:23,67 the things I think we'll see is again and again in the prosperity thing it says 246 00:21:24,03 --> 00:21:28,10 there's synergies How might these businesses that people are thinking about the 247 00:21:28,11 --> 00:21:34,66 ballot being worked together and so. This is you know it's 248 00:21:35,18 --> 00:21:40,19 it's something that. We think needs to be explored because there's there's 249 00:21:40,20 --> 00:21:45,41 a need for us to calibrate jobs and so we're moving forward with goodwill and with 250 00:21:45,42 --> 00:21:50,24 that we'll move to you know and I'm going to I'm going to circulate this list just 251 00:21:50,25 --> 00:21:50,91 so you guys can take 252 00:21:50,92 --> 00:21:55,26 a look at it and if you have ideas for additional clusters or you want to help with 253 00:21:55,27 --> 00:22:01,15 thought any of the the forms that we've put together please go ahead and get with 254 00:22:01,16 --> 00:22:07,64 me and Mike after the meeting and. The again the. Under. 255 00:22:09,00 --> 00:22:13,52 Three D. I'm not going to do that section I see that my time for Dave to give 256 00:22:13,53 --> 00:22:19,74 a little introduction to tell me you know half of the bill and the district right 257 00:22:19,75 --> 00:22:26,21 now and I'm going to be just basically doing what called Current World Trade trends 258 00:22:26,25 --> 00:22:27,53 and us in the U.S. 259 00:22:27,65 --> 00:22:32,71 For competition and basically you'll see with that is I don't claim to be an expert 260 00:22:32,72 --> 00:22:36,65 in that. And just let you know it's just that that's 261 00:22:36,66 --> 00:22:43,25 a. A quick change and. Well. Without further ado. You may 262 00:22:43,71 --> 00:22:47,60 hope for under three you know you did to me first I thought I was in the second 263 00:22:47,90 --> 00:22:53,88 round world trade you're in the right in the US court competition. The idea here. 264 00:22:55,92 --> 00:23:00,95 Is to frame world trade and Mike recently attended 265 00:23:01,25 --> 00:23:08,21 a conference and so he saw presentations with more than once an aerial and 266 00:23:08,22 --> 00:23:14,07 certainly this has bearing on potential trade or helpful and. 267 00:23:16,64 --> 00:23:22,85 So this is kind of. You know with the harbor district we are kind of involved in 268 00:23:22,86 --> 00:23:28,11 the redwood dock and in the shipping trades in terms of our our prospects and 269 00:23:28,16 --> 00:23:34,64 desires and so that has this kind of bearing on the redwood are. All right 270 00:23:35,09 --> 00:23:41,19 so that we win over the why of the committee. It's really to explore the new 271 00:23:41,20 --> 00:23:45,49 business opportunities with the empties where the constraints how can overcome the 272 00:23:46,37 --> 00:23:51,32 other synergies and went through that. They what's going on here you tell me first 273 00:23:51,33 --> 00:23:58,18 to know you didn't. Know you OK with one 274 00:23:58,30 --> 00:24:05,09 of them aha closed to close to two OK so get that little guy out there 275 00:24:05,55 --> 00:24:11,01 look at that I'm an expert now all right so OK Basically this is actually excerpts 276 00:24:11,02 --> 00:24:16,27 from three presentations that I saw in the two this is I added the last one as I 277 00:24:16,28 --> 00:24:19,70 was sitting here today while people are gathering and there's 278 00:24:19,71 --> 00:24:24,67 a few excerpts from stuff that Pat also add put in there. So these are just 279 00:24:24,82 --> 00:24:28,66 excerpts from from presentations they're given in articles and I would be clear I 280 00:24:28,67 --> 00:24:34,20 am not an economist OK it is really very clear I'm going to try very hard to give 281 00:24:34,21 --> 00:24:39,71 any of the night I while you know that there's four sort of four sort of trends 282 00:24:39,77 --> 00:24:45,53 there are opinions that are of these economists who are kind of rosy and two are 283 00:24:45,54 --> 00:24:52,28 not very rosy and I come in or mix them so that the rosy for not so rosy rosy not 284 00:24:52,29 --> 00:24:59,25 so rosy Rose has to be very technical. Folks scuse me so I was talking 285 00:24:59,26 --> 00:25:03,41 about land use again Port of Oakland port of humble port when you need three or 286 00:25:03,45 --> 00:25:06,28 operates there's a lot of lot of business it's 287 00:25:06,29 --> 00:25:09,18 a billion dollars worth of goods go through there in 288 00:25:09,19 --> 00:25:11,84 a year and it's like plant he has less than 289 00:25:11,85 --> 00:25:17,13 a mile waterfront and only one hundred twenty acres. You know again what are the 290 00:25:17,14 --> 00:25:22,97 opportunities that we have around him obey. And how are we how do we view ourselves 291 00:25:22,98 --> 00:25:29,21 really. Looking for those things so the first one is John have been. Found of 292 00:25:29,22 --> 00:25:32,53 Beacon Economics and he did he was part of 293 00:25:32,54 --> 00:25:39,06 a study that looked at the expectations of world trade in twenty twenty and 294 00:25:39,39 --> 00:25:45,18 and he he stood in shame of what his expectations were. And this was done in two 295 00:25:45,19 --> 00:25:48,88 thousand to everybody in two thousand to thought everything you know this guy was 296 00:25:48,89 --> 00:25:52,94 the. I mean everything is going gangbusters and we all work we all were 297 00:25:52,95 --> 00:25:56,32 a part of that. So there's what happened in U.S. 298 00:25:56,33 --> 00:26:02,35 Trade flows basically from in July of zero way things things started to press 299 00:26:02,72 --> 00:26:06,88 interesting Lee enough on the west coast things were actually starting the to drop 300 00:26:06,97 --> 00:26:12,55 some one in two thousand and six which you can see here these are Oakland point 301 00:26:12,56 --> 00:26:17,79 four volumes remain below recent years so this imports coming into Oakland two 302 00:26:17,80 --> 00:26:22,80 thousand and six is considered the peak right so things were actually in some in 303 00:26:22,81 --> 00:26:28,95 West Coast ports there was actually declines seen two thousand and six and then the 304 00:26:29,29 --> 00:26:32,72 port of. Down south in L.A. 305 00:26:32,73 --> 00:26:39,69 And Long Beach we're seeing similar declines. So this is goods consumption. 306 00:26:41,30 --> 00:26:46,19 And and sandpaper import container flows you can see that goods consumption was 307 00:26:46,20 --> 00:26:52,46 actually still moving up after imports were starting to drop. The theory behind 308 00:26:52,47 --> 00:26:57,79 that is that's because housing was actually starting to slow as an indicator that 309 00:26:57,80 --> 00:27:04,28 things were heading south and the and so and so the materials for those for that 310 00:27:04,29 --> 00:27:10,40 industry was starting to drop off and you know two thousand and seven. This was 311 00:27:11,22 --> 00:27:16,69 his estimation of when we would return to the two thousand and six based on 312 00:27:16,70 --> 00:27:18,63 a couple of assumptions they did kind of 313 00:27:18,64 --> 00:27:24,59 a matrix one is does the zero eight to ten decline that we're in right now reduce 314 00:27:25,03 --> 00:27:29,83 throughput by fifteen percent twenty percent to twenty five percent So he basically 315 00:27:29,84 --> 00:27:30,54 took you know 316 00:27:30,55 --> 00:27:35,22 a conservative approach and you know let's say reproach and sort of mediated that 317 00:27:35,59 --> 00:27:39,10 things that subsequent growth rate after you hit the bottom is going to be three 318 00:27:39,11 --> 00:27:43,11 percent five percent and ten percent and when things are going gangbusters you know 319 00:27:43,29 --> 00:27:48,36 ten percent eight in ten percent was really great. And three percent is considered 320 00:27:48,37 --> 00:27:53,75 quite slow. And so he chose five percent to be the median and so his estimate for 321 00:27:53,86 --> 00:28:00,26 reaching two thousand and six levels. Is in two thousand and seventeen which sets 322 00:28:00,60 --> 00:28:04,34 sets the west coast back from you know its predictions of what was going to really 323 00:28:04,38 --> 00:28:09,89 move happening almost ten years. And so but you know there's 324 00:28:09,90 --> 00:28:13,45 a whole range and as you can see the growth rate is really more of 325 00:28:13,46 --> 00:28:20,25 a determiner than what the peak is. So in summary of his prolong 326 00:28:20,26 --> 00:28:24,56 global economic downturn will exert significant downward pressure on trade the 327 00:28:24,57 --> 00:28:28,68 death of the Americans consumer and less construction will affect US imports going 328 00:28:28,69 --> 00:28:34,26 forward growth weeks slower from from lower level and ports that were pushing their 329 00:28:34,27 --> 00:28:40,11 capacity in two thousand and six have three to ten years of breathing room. All 330 00:28:40,12 --> 00:28:45,29 right so this was Paul Bingham and all these guys are great presented by 331 00:28:45,30 --> 00:28:50,71 a much better than myself because it's their subject matter all right so worst 332 00:28:50,72 --> 00:28:54,92 global recession in six decades North American Europe Japan severe downturns 333 00:28:55,73 --> 00:29:00,39 emerging markets slowed magically. Two thousand and eight financial crisis further 334 00:29:00,40 --> 00:29:05,90 constrained but great depression or Japan Japan style lost decade is unlikely and 335 00:29:05,91 --> 00:29:11,40 huge fiscal monetary stimulus will help keep help spark recovery and baseline 336 00:29:11,41 --> 00:29:17,95 forecast is modest and. Yet so well I guess 337 00:29:18,72 --> 00:29:23,24 so all the economists and today it came out that you know there was 338 00:29:23,25 --> 00:29:27,26 a big survey of economists saying that they believe that the recession will start 339 00:29:27,27 --> 00:29:31,35 to turn around the end of two thousand and nine. These guys were kind of talking 340 00:29:31,36 --> 00:29:35,76 about two thousand and ten there with they were talking about maybe they had talked 341 00:29:35,77 --> 00:29:41,94 to the other economists. This economic forecast business cycle is not dead world 342 00:29:41,95 --> 00:29:46,85 economy starts you know recover starting in two thousand and ten this is what and 343 00:29:46,86 --> 00:29:52,34 this was the rosy person. You can see this is an interesting chart this is world 344 00:29:52,35 --> 00:29:54,24 imports as a percent of G.D.P. 345 00:29:54,58 --> 00:29:59,36 I thought was interesting is this doesn't really come back until about two thousand 346 00:29:59,37 --> 00:30:05,45 and twenty. But this doesn't relate directly to important volumes so maybe it's not 347 00:30:05,46 --> 00:30:12,15 so relevant. This is the world ocean trade down to Naprosyn two thousand and nine 348 00:30:12,23 --> 00:30:19,18 coverage two thousand and ten. And wait why am I getting to Oakland again it's just 349 00:30:19,62 --> 00:30:25,28 that form there OK So this wasn't I just put this in there is interesting this is 350 00:30:25,79 --> 00:30:31,41 container carrier fleet capacity isn't black and sea borne trade container you know 351 00:30:31,42 --> 00:30:36,08 the trade of containers in red you can see that the capacity is going to be far 352 00:30:36,09 --> 00:30:39,79 exceeding the containers this has to do with the fact that the that there's been 353 00:30:40,03 --> 00:30:44,74 this is everyone had these great predictions right in there is some few years ago 354 00:30:44,75 --> 00:30:49,24 and so all of these orders were made for large container ships to be built which 355 00:30:49,52 --> 00:30:54,47 are you know irrevocable they can't go back on them they've already started 356 00:30:54,52 --> 00:30:59,69 building ships and so these contracts have to be for film and so there is going to 357 00:30:59,70 --> 00:31:00,01 be 358 00:31:00,05 --> 00:31:11,38 a huge. Difference between the capacity and in the volume of traffic. So 359 00:31:11,52 --> 00:31:18,43 Port compared nys. Cost and protect productivity of labor management fees 360 00:31:18,75 --> 00:31:22,23 these are some of the problems that he sees environmental regulations emission 361 00:31:22,24 --> 00:31:27,33 costs internalization can affect commodity sourcing cargo routing long term 362 00:31:27,34 --> 00:31:31,67 rebounding and increasing vs trade volumes risk outpacing capacity additions at the 363 00:31:31,68 --> 00:31:37,00 West Coast ports at which time then shares of discretionary trade through 364 00:31:37,01 --> 00:31:41,14 California courts may decrease meaning people may choose to go other places 365 00:31:41,51 --> 00:31:45,41 Environmental injury safety and security issues are likely to increasingly in flu 366 00:31:45,42 --> 00:31:52,37 sourcing and routing decisions. And so wait where is this OK So that was that was 367 00:31:53,19 --> 00:31:58,23 that guy this is coming from the journal commerce online so this person this is 368 00:31:58,24 --> 00:32:02,13 kind of you know looking at some of the big losses top twenty ocean character 369 00:32:02,36 --> 00:32:07,16 carriers maybe facing total losses that exceed four million idle vessels represent 370 00:32:07,17 --> 00:32:11,36 ten percent of the world fleet as of April thirteenth charter owner investment 371 00:32:11,37 --> 00:32:16,04 funds have two hundred and seventy four unemployed ships and so we're looking at 372 00:32:16,22 --> 00:32:22,81 you know huge downturns in the shipping industry right now. A ways 373 00:32:23,36 --> 00:32:26,86 this is going to get through because it's just all the bad news things are just you 374 00:32:26,87 --> 00:32:32,14 know. We should we should probably keep moving because this is way more detail than 375 00:32:32,15 --> 00:32:36,56 anyone needs to see quite honestly in the time that we have and to be quite honest 376 00:32:37,04 --> 00:32:41,05 all of the stuff will be online on our website so you can check it out there and I 377 00:32:41,06 --> 00:32:45,99 want to boy this is something I think Pat put together this is basically an example 378 00:32:46,00 --> 00:32:50,84 of investments and other ports along the west coast there that are online and 379 00:32:50,85 --> 00:32:56,63 they're also investments in the East Coast as well as the Panama Canal and even the 380 00:32:56,64 --> 00:32:57,34 Suez Canal. 381 00:33:04,79 --> 00:33:10,44 Or it's like Jacksonville or is that what you see and the California with the time 382 00:33:10,91 --> 00:33:17,70 is set up to two billion dollars And you're right. Yeah and so not to 383 00:33:17,82 --> 00:33:22,55 you know not to be all doom and gloom quite honestly this the the analysis of this 384 00:33:22,56 --> 00:33:26,02 person here was that the capacities on the East Coast are not going to grow as 385 00:33:26,03 --> 00:33:30,85 quickly as one might think that that West Coast ports are still very competitive 386 00:33:31,10 --> 00:33:35,54 and so just kind of show you what he is where he's going to get into California 387 00:33:35,55 --> 00:33:40,50 remain the first choice of importers East and Gulf Coast ports bones will expand 388 00:33:40,51 --> 00:33:44,81 capacity but not alter competitive positions and this is the opinion this person 389 00:33:44,82 --> 00:33:49,12 here and you know he's he's an expert on water options of always. When available 390 00:33:49,35 --> 00:33:54,80 specific Martin second segments are price sensitive. Long term porn in one capacity 391 00:33:54,81 --> 00:34:00,06 issues are serious on both coasts most East Coast ports cannot handle large ships 392 00:34:00,10 --> 00:34:02,53 which is true east coast D.C. 393 00:34:02,54 --> 00:34:07,38 Supplement west coast B.C.'s I'm not quite sure what that is imports from China 394 00:34:07,39 --> 00:34:12,27 will continue to grow and neither the to be N.S.F. 395 00:34:12,28 --> 00:34:16,54 Nor you will give up with Midwest market meaning there are there railroads and 396 00:34:16,55 --> 00:34:21,22 there's congestion issues associate with that. Should we do something and the 397 00:34:21,23 --> 00:34:25,18 answer for this person is yes and remember the audience for this presentation was 398 00:34:25,55 --> 00:34:31,16 courts so you know and so this was this one thing yet go forward we cannot take 399 00:34:31,17 --> 00:34:35,67 a committee competitive position for granted port capacity projects need to move 400 00:34:35,68 --> 00:34:40,35 forward despite revenue shortfalls importers need to need reassurance that of 401 00:34:40,36 --> 00:34:44,82 California port capacity instability truck programs and port fees must become 402 00:34:44,83 --> 00:34:48,79 routine and transparent and inland capacity projects remain critical and buy in 403 00:34:48,80 --> 00:34:55,55 Lanka Passy that means rail and highways. What bearing does this this world trade 404 00:34:55,56 --> 00:34:58,55 had on port a whole the prospects for increased shipping as 405 00:34:58,56 --> 00:35:03,71 a source of job creation I do not have the answer for that I'm just posing the I'm 406 00:35:03,72 --> 00:35:08,62 just posing to you some of what other people have said and so I don't have the 407 00:35:08,63 --> 00:35:13,25 answer I'm not posing to have the answer and I can get you contact all of those 408 00:35:13,26 --> 00:35:16,17 people and you can talk to them directly they've been happy to talk to you. 409 00:35:17,54 --> 00:35:24,54 Questions if you have any questions for me as much room or I am an economist. All 410 00:35:24,55 --> 00:35:30,25 right is is is every person. Behind. 411 00:35:31,54 --> 00:35:38,19 The right. Thinks that Mike. So I'm just curious 412 00:35:38,20 --> 00:35:41,80 a little bit about the process here and what your what you just reported 413 00:35:41,81 --> 00:35:47,91 essentially is what Dave Spreen and many of us have commented on especially the 414 00:35:47,92 --> 00:35:54,47 road toward Marine Terminal proposal. As the economic in viability of it will be as 415 00:35:54,48 --> 00:36:00,48 important what will you come up with. Recommendations of this committee to move on 416 00:36:00,49 --> 00:36:07,37 as economic drivers around the bit with the one you know this that is here that 417 00:36:07,38 --> 00:36:09,73 show you here is mostly based on T.V. 418 00:36:09,74 --> 00:36:14,65 Use which is the containerized shipping and so that's only one form of shipping 419 00:36:14,69 --> 00:36:19,85 terms of like this analysis so I can't you know you can't I can't really infer. It 420 00:36:19,86 --> 00:36:25,48 in bad for all shipping opportunities from the information that's given here it 421 00:36:25,49 --> 00:36:32,04 just gives you kind of world trends and to. They're all over the place in terms of 422 00:36:32,05 --> 00:36:38,76 their analysis so I'm I'm I'm not going to project this evening no or try very hard 423 00:36:38,77 --> 00:36:43,89 not to project in doom and gloom or rosy one way or the other I'm just saying that 424 00:36:44,54 --> 00:36:49,71 on say is that in the first four sources that I've got very mixed with the issues 425 00:36:50,08 --> 00:36:57,08 and so the process here is really just. With regards to 426 00:36:57,14 --> 00:37:03,25 opportunities you know those that. Well and I think I think this is kind of partly 427 00:37:03,26 --> 00:37:07,59 grist for the mill for the seeds panel and what does you guys stake on the 428 00:37:08,10 --> 00:37:13,88 prospects for trade. And what bearing does that have on business and humble and 429 00:37:13,89 --> 00:37:20,66 certainly. It has it has bearing on whether or not the redwood dock use is viable 430 00:37:20,74 --> 00:37:26,85 and that's one of the reasons we're discussing it. Ultimately are. Our 431 00:37:26,86 --> 00:37:32,76 deliberations will focus mostly on. What we collaborate at least the side of the 432 00:37:32,77 --> 00:37:39,26 most tangible prospects and part of our brief but hopefully important report will 433 00:37:39,27 --> 00:37:45,32 be how can we reduce impediments to those that are desirable and I think really. 434 00:37:47,38 --> 00:37:52,50 One piece of that waterfront which I'm out that four point five miles duster leads 435 00:37:52,79 --> 00:37:59,30 into an industrial waterfront. We have owners here over other pieces of property on 436 00:37:59,31 --> 00:38:02,92 this thing so the impacts or the discussion really is sort of global in terms of 437 00:38:02,93 --> 00:38:07,42 the bay it's not really one specific piece of property though. 438 00:38:10,66 --> 00:38:11,17 You can direct 439 00:38:11,73 --> 00:38:16,40 a speaking directly towards an industrial container facility as opposed to say 440 00:38:16,41 --> 00:38:19,84 short sea shipping or container on barges something like that which seems to be 441 00:38:19,85 --> 00:38:23,88 much more scale appropriate for for the base of but it would be great to see some 442 00:38:23,89 --> 00:38:27,72 recommendations come out of this committee before we put more resources of the 443 00:38:27,73 --> 00:38:34,57 district into that kind of planning when I think this is kind of far. Intent 444 00:38:34,58 --> 00:38:40,05 to to get the private side folks who you know we haven't really engaged too much in 445 00:38:40,06 --> 00:38:43,84 terms of our explorations of the redwood dock and and see what the practical 446 00:38:43,85 --> 00:38:48,44 capitalists on the shores of the bay think about trade and where we're going so you 447 00:38:48,45 --> 00:38:53,77 know Mike and I are not experts we're just exploring. If you can pass 448 00:38:53,78 --> 00:39:00,26 a mike or Susan. Thank you with here we are and we're in this in this 449 00:39:00,41 --> 00:39:06,25 different position than maybe some other ports in that you know it's the goal of 450 00:39:06,26 --> 00:39:10,71 the district if if to move forward or when there how we move forward with rail with 451 00:39:11,31 --> 00:39:17,82 that need you know it has to be not competitive with our other operators on the bay 452 00:39:17,83 --> 00:39:22,25 but complimentary to that and that's part of the process to how is it that we can 453 00:39:22,26 --> 00:39:27,34 be complimentary to the efforts of those other business owners around them obey as 454 00:39:27,35 --> 00:39:30,45 opposed to competitive and we need to have dialogue in order to make sure that we 455 00:39:30,46 --> 00:39:37,28 do that. Any of these meetings that you went to. Presentations did 456 00:39:37,29 --> 00:39:42,24 they discuss land transportation after you unload 457 00:39:42,25 --> 00:39:48,92 a ship and then it's it's got to go somewhere so did they address that at all yes 458 00:39:49,23 --> 00:39:55,22 they dressed in two ways one was capacity from their perspective capacity to move 459 00:39:55,23 --> 00:39:56,13 the goods away from 460 00:39:56,14 --> 00:40:02,28 a port in an affective way to the impacts basically environmental impacts of that 461 00:40:02,61 --> 00:40:02,77 was 462 00:40:02,78 --> 00:40:07,70 a big driver of the discussion of those and soon talking about larger ports specially 463 00:40:07,94 --> 00:40:14,52 when the where the the impact of neighborhoods was huge in their discussion but 464 00:40:14,53 --> 00:40:20,65 remember with the symposium I went to is really mostly for people although they 465 00:40:20,66 --> 00:40:26,26 were addressed by environmental concerns directly the the the director of the. 466 00:40:27,63 --> 00:40:31,66 Defense and the Natural Resource Defense Council direct you know be able 467 00:40:31,67 --> 00:40:35,76 presentation center low in Fallout and you know big environmentalist from down 468 00:40:35,77 --> 00:40:40,80 south who started his political career really battling the Port of Long Beach so 469 00:40:41,02 --> 00:40:46,36 they're very aware of that in those ports and they view it both as well they really 470 00:40:46,37 --> 00:40:46,71 viewed as 471 00:40:46,72 --> 00:40:51,66 a constraint but they're one that they're willing to address directly as opposed to 472 00:40:52,29 --> 00:40:58,38 you know. In the trains are better for all kinds of. What you know if they had 473 00:40:58,39 --> 00:41:04,94 thought. That. Sure. We're. 474 00:41:07,75 --> 00:41:11,99 There that all of the other ports or who's shooting with Captain prove that 475 00:41:12,00 --> 00:41:16,90 projects that literally are hundreds of millions and from paid for billions of 476 00:41:16,91 --> 00:41:23,64 dollars. And then they're moving ahead with those infrastructure projects in spite 477 00:41:23,65 --> 00:41:30,04 of what your side. I mean we have 478 00:41:30,72 --> 00:41:34,48 prop one big. It's going to spend a billion dollars on L.A. 479 00:41:34,49 --> 00:41:41,05 Long Beach and. The. The the 480 00:41:41,06 --> 00:41:45,45 payback scenarios are dropping because of the competition in the build out of 481 00:41:45,46 --> 00:41:49,36 infrastructure in the diminishing the trade but they're sitting on almost 482 00:41:49,37 --> 00:41:52,68 a billion dollars in cash. And 483 00:41:53,30 --> 00:42:00,00 a billion dollars additional in infrastructure. And. Canada actually Vancouver 484 00:42:00,01 --> 00:42:05,31 and Prince Rupert are not down there actually Koppen more of the Western trade 485 00:42:05,32 --> 00:42:10,52 market and so Rupert has got another six hundred million they're putting in to on 486 00:42:10,53 --> 00:42:10,91 top of 487 00:42:10,92 --> 00:42:17,77 a billion already and invest in nine hundred million this year and Tacoma is going 488 00:42:17,78 --> 00:42:23,46 ahead with four hundred million and it was you know talking big and was like two 489 00:42:23,47 --> 00:42:28,20 billion and some of these will settle out for sure because it changes in trade 490 00:42:28,21 --> 00:42:34,07 condition. And whether or not you know those figures on the ships and the capacity 491 00:42:34,08 --> 00:42:38,51 you know some of those investment funds look like sure money five years ago and 492 00:42:38,52 --> 00:42:42,04 then they programmed the deal and now the ships were gone for three hundred 493 00:42:42,05 --> 00:42:42,82 thousand dollars for 494 00:42:42,83 --> 00:42:47,30 a trip and now they're gone for twenty five thousand that's not likely to last but 495 00:42:48,26 --> 00:42:52,67 another words they're still Gamelin that it's going to turn back up at their if 496 00:42:52,68 --> 00:42:57,49 they continued to expand but they're also putting themselves in you know they're 497 00:42:57,50 --> 00:43:02,34 making competition in the west coast more fierce in doing so. 498 00:43:07,39 --> 00:43:14,24 And in the people that. Were there in the. One with 499 00:43:14,94 --> 00:43:21,70 the. Infrastructure Project. In the Greek you know 500 00:43:21,71 --> 00:43:28,11 reversal in the fortunes of the west coast trade but this the the saying one is is 501 00:43:28,20 --> 00:43:28,54 actually 502 00:43:28,55 --> 00:43:34,66 a lot of those projects have stopped or been put on hold because of capital constraints 503 00:43:35,67 --> 00:43:38,32 and some of them have been put on hold but that doesn't mean that they don't have 504 00:43:38,33 --> 00:43:42,01 them programmed and put you know their plan for the military thing they're just 505 00:43:42,02 --> 00:43:46,68 like can't it's like just like everybody in the business community can't quite get 506 00:43:46,69 --> 00:43:53,58 to that now but they're still they're still moving. I mean they may be 507 00:43:53,77 --> 00:44:00,60 old but they still are have their spots. And. You know these I assume are 508 00:44:00,61 --> 00:44:06,75 public funded Right right well public in terms of the ports themselves are building 509 00:44:06,76 --> 00:44:12,65 them and most of them are public agencies but the. Large. 510 00:44:13,77 --> 00:44:17,61 And in the week so the three weeks ago for 511 00:44:17,62 --> 00:44:24,21 a long beach there their city council. Through this very large expansion. 512 00:44:25,31 --> 00:44:31,61 Of the four one and they call it the middle. Middle Harbor project and big I mean 513 00:44:31,91 --> 00:44:38,18 you know well you know really. It doesn't. There with me. 514 00:44:39,74 --> 00:44:43,59 What's next on the agenda is current and near term Marine trade and port 515 00:44:43,60 --> 00:44:50,60 opportunities. Ships cargo capitalization of the redwood dock. Potential trade 516 00:44:50,61 --> 00:44:56,42 partners and timeline for development and we have David Hall our esteemed executive 517 00:44:56,43 --> 00:44:58,54 director who will introduce 518 00:44:58,55 --> 00:45:03,43 a topic and briefly recap the histories the history of the District's. 519 00:45:05,93 --> 00:45:11,91 Direction here and then he will be followed by. Wilson Lacy our maritime director. 520 00:45:15,46 --> 00:45:21,88 Who. Has got the mike there to the right of Susan thanks to it 521 00:45:22,84 --> 00:45:28,85 for remembering. So much so yes that's. 522 00:45:35,41 --> 00:45:41,13 OK. Thanks. We're going to do a little bit of a. Little bit of 523 00:45:41,14 --> 00:45:45,84 a tag team presentation on this Wilsons actually got the note of the information 524 00:45:45,85 --> 00:45:49,55 for you but I thought it was important since we've got kind of 525 00:45:49,56 --> 00:45:52,98 a mixed audience here some of you folks actually live the stuff I'm going to talk 526 00:45:52,99 --> 00:45:57,33 about some of you others maybe not so much so I wanted to kind of just spend 527 00:45:57,34 --> 00:46:00,74 a few minutes going through how the Harvard history kind of got here as far as our 528 00:46:00,75 --> 00:46:04,61 marketing program where we're going kind of the thread that got us here in the 529 00:46:04,62 --> 00:46:09,17 continuum that the District been working on for several years to get to the place 530 00:46:09,18 --> 00:46:11,84 that we are right now it's not like district just woke up 531 00:46:11,85 --> 00:46:14,88 a couple years ago and say do this this is been something that's been in the 532 00:46:14,89 --> 00:46:18,54 mission of the district since it was formed in one nine hundred seventy and it's 533 00:46:18,55 --> 00:46:21,04 something that we've been following through for quite 534 00:46:21,05 --> 00:46:23,09 a while. I'm going to I'm going to do just 535 00:46:23,10 --> 00:46:26,63 a brief history of the harbor revitalization just real brief and then Wilson's 536 00:46:26,64 --> 00:46:33,22 going to take over and do the current long term. Focus on. Short history here. 537 00:46:36,27 --> 00:46:39,51 The need for hard revitalization I'm going to back to the one nine hundred eighty 538 00:46:39,52 --> 00:46:39,65 S. 539 00:46:39,66 --> 00:46:44,09 And ninety's and kind of recap some things for those of you that maybe weren't here 540 00:46:44,10 --> 00:46:46,96 or those you that didn't weren't aware of this back in one thousand nine hundred 541 00:46:47,00 --> 00:46:51,07 ninety S. The port of Mobile Bay actually started changing 542 00:46:51,08 --> 00:46:54,33 a little bit business wise and it always had ups and downs it had gone for 543 00:46:54,34 --> 00:46:57,41 a long time Leroy's back here somewhere Leroy can probably do 544 00:46:57,42 --> 00:47:01,57 a lot of this much better than I could with the history but in the eighty's and 545 00:47:01,58 --> 00:47:06,31 ninety's things started to change in one of the things that was was discovered was 546 00:47:06,32 --> 00:47:10,76 that our channels that we had the ten miles of never geisha channels and home will 547 00:47:10,77 --> 00:47:16,80 be were at of depth that made us uncompetitive with the the rest of the Pacific Rim 548 00:47:17,41 --> 00:47:22,46 shipping. The fleet the ships that were actually in the Pacific Rim trade written 549 00:47:22,47 --> 00:47:26,77 bigger they're getting less powerful to save on fuel and so they needed more room 550 00:47:26,78 --> 00:47:31,42 to maneuver things like this and we weren't we weren't able to accommodate some of 551 00:47:31,43 --> 00:47:36,20 those it was it was becoming very worrisome for the terminal operators and the port 552 00:47:36,21 --> 00:47:37,81 businesses that were here it was 553 00:47:37,82 --> 00:47:41,18 a practice of what they call light loading which meant that because of our channel 554 00:47:41,19 --> 00:47:45,40 depths they had to bring in ships that were we need to be the first port of call or 555 00:47:45,41 --> 00:47:48,07 they'd have to rearrange things so that they couldn't pick up 556 00:47:48,08 --> 00:47:52,94 a whole load here which increase their costs which again made us less competitive 557 00:47:53,78 --> 00:47:58,54 during that time the tonnage in humble they decreased about twenty five percent for 558 00:47:58,55 --> 00:48:04,50 variety of reasons one of the things that was also I think relevant is and still is 559 00:48:04,51 --> 00:48:09,49 is that we are and have been really a one commodity port although we do fuel we do 560 00:48:09,50 --> 00:48:11,94 a lot of fuel here importing really were 561 00:48:11,95 --> 00:48:16,28 a forest products niche port and that's you know when you have one commodity it 562 00:48:16,29 --> 00:48:19,70 tends to have the coming boom and bust sort of situation that we're going through 563 00:48:19,71 --> 00:48:20,82 right now and then there was 564 00:48:20,83 --> 00:48:25,68 a result in loss of the Jew. In the skilled labor that went along with that the 565 00:48:25,69 --> 00:48:29,50 district's answer was to start down what we call in the port of handsome 566 00:48:29,51 --> 00:48:33,32 a program at that time and this is really generated by the port and terminal 567 00:48:33,33 --> 00:48:37,24 operators they actually came to the district and said channels are making us 568 00:48:37,25 --> 00:48:40,09 uncompetitive you know if we're going to stay in business we really need the harbor 569 00:48:40,10 --> 00:48:44,08 district to help us out work with the Corps of Engineers to get these channels deep 570 00:48:44,09 --> 00:48:50,03 and so the first phase was really the Harvard deepening project. Again the goal was 571 00:48:50,04 --> 00:48:53,64 to modernize the the channels infrastructure limited practice 572 00:48:53,65 --> 00:48:59,03 a light loading improve the navigation safety not only for the big ships but also 573 00:48:59,04 --> 00:49:02,77 for the commercial fisherman and for the the recreational fishermen anybody use the 574 00:49:02,78 --> 00:49:09,06 bay this was this was to help with that too and lay the groundwork for then future 575 00:49:09,44 --> 00:49:14,33 future growth here in the port. The economic goals that we that the district hoped 576 00:49:14,34 --> 00:49:18,62 to get from the deepening project were to retain the existing cargo and stop what 577 00:49:18,63 --> 00:49:23,20 we were calling back then cargo leakage because of this and competitive nature in 578 00:49:23,21 --> 00:49:26,58 the channel depths some of cargoes were actually going to places like whose Bay or 579 00:49:26,59 --> 00:49:31,19 down the barrier things like this by truck and big ship that from there the idea 580 00:49:31,20 --> 00:49:34,69 was to stop that develop new commodities from what we were calling our hinterland 581 00:49:34,91 --> 00:49:40,87 at that time in our hinterland was basically from here to Reno up into southern 582 00:49:40,88 --> 00:49:45,58 Oregon and down as far south as that was the hinterland that we were looking to 583 00:49:45,76 --> 00:49:51,55 generate whatever was that we were really that areas for and it was to attract some 584 00:49:51,56 --> 00:49:58,41 additional port related manufactures this is just shows the channels that weren't 585 00:49:58,42 --> 00:50:02,36 part of the deepening project more dangerous or more you know it was just right if 586 00:50:02,37 --> 00:50:08,46 you buy more right there you notice on your own the field landing channel is not on 587 00:50:08,47 --> 00:50:14,52 there and that was we go would be here the harbor district and what he worked for 588 00:50:14,53 --> 00:50:18,55 a lot of years to try to get the Corps of Engineers in Congress to authorize that 589 00:50:18,56 --> 00:50:18,66 as 590 00:50:18,67 --> 00:50:23,37 a part of the deepening project is just wasn't happening because I guess their final 591 00:50:23,38 --> 00:50:28,59 answer was there was only one o one terminal operator down there and that was the O. 592 00:50:29,14 --> 00:50:34,96 And they didn't want to as practice spend the of the federal money on just one 593 00:50:34,97 --> 00:50:39,08 business if there was multiple businesses which there was on the other channel then 594 00:50:39,09 --> 00:50:42,33 it was OK so we but we did work on that for quite 595 00:50:42,34 --> 00:50:47,45 a while so in June two thousand Deeping project was completed after the deepening 596 00:50:47,46 --> 00:50:50,69 project what we're going to do then. Well we knew that just because we deepen the 597 00:50:50,70 --> 00:50:54,42 channel we were going to have more business it wasn't just going to show up just 598 00:50:54,43 --> 00:50:54,81 because we had 599 00:50:54,82 --> 00:50:58,35 a deeper channel there was going to have to be more than that and so after about 600 00:50:58,36 --> 00:51:00,36 a year or so the district set on 601 00:51:00,37 --> 00:51:04,91 a path to to say Alright let's let's let's look at the port facilities we have the 602 00:51:04,92 --> 00:51:08,73 sort of the assets the channel the the current state of business around the 603 00:51:08,74 --> 00:51:12,41 properties that are here all the different pieces that make up the port of Mobile 604 00:51:12,42 --> 00:51:15,56 Bay and see where the port of them will be fits in the world of maritime shipping 605 00:51:15,57 --> 00:51:22,12 in the twenty first century. As part of that we also define kind of what the port 606 00:51:22,13 --> 00:51:25,70 of humble Bay is this is kind of the area that this came of the we're into the kind 607 00:51:25,71 --> 00:51:31,91 of the the middle late ninety's now. We define that the Port of Mobile Bay Not as 608 00:51:31,92 --> 00:51:33,67 a single terminal but is really 609 00:51:33,68 --> 00:51:37,97 a geographic reference and that goes basically from the small bridge down to the 610 00:51:37,98 --> 00:51:41,99 southern end of the field land that's the port portion and those you that know our 611 00:51:42,00 --> 00:51:45,81 humble way Management Plan know that North and South they are are not 612 00:51:45,82 --> 00:51:49,71 a part of any port plans ever that the port activity is really limited right to 613 00:51:49,72 --> 00:51:53,31 that center part of the bay so that that center part of the Bay of course covers 614 00:51:53,32 --> 00:51:58,63 three jurisdictions covers our districts the counties in the city of Eureka's So we 615 00:51:58,67 --> 00:52:03,13 partnered with all three of those entities and ultimately three other agencies to 616 00:52:03,14 --> 00:52:06,72 do what we call the harbor revitalization plan as some of you know participate in 617 00:52:06,73 --> 00:52:10,23 this because now we're up into Would two thousand and two we hired 618 00:52:10,24 --> 00:52:12,02 a consulting firm P.V. 619 00:52:12,03 --> 00:52:16,85 Ports and Marine to do that and that study was completed in February of zero three 620 00:52:17,57 --> 00:52:21,12 again they looked at they looked at all the parcels that were in that area they 621 00:52:21,13 --> 00:52:27,52 looked at. Marketing opportunities that were out there one of the important things 622 00:52:27,53 --> 00:52:31,32 is they also they looked at not only cargo opportunities but also non cargo 623 00:52:31,33 --> 00:52:37,22 opportunities that might be in that in that particular port area. They looked at 624 00:52:37,23 --> 00:52:41,21 like said the parcels of two hundred thirty five parcels in that in that area the 625 00:52:41,22 --> 00:52:45,76 group them into sixteen different different key sites some with active terminal 626 00:52:45,77 --> 00:52:49,10 some with an active terminal some some that were more appropriate for this non 627 00:52:49,11 --> 00:52:55,34 cargo kind of uses. They recommended seven strategic focus areas in the final 628 00:52:55,35 --> 00:52:59,36 report they said that there was opportunities for marine dependent industrial 629 00:52:59,89 --> 00:53:04,73 operations here and it's dry and liquid bulk cargoes coastal future barge service 630 00:53:05,75 --> 00:53:06,58 this is a this is 631 00:53:06,59 --> 00:53:10,21 a slide from their presentation back when so it's with current services rail 632 00:53:10,22 --> 00:53:16,30 services and service we have now. Marine Science and tourism was 633 00:53:16,32 --> 00:53:18,91 a thing that they that they thought had a had 634 00:53:18,92 --> 00:53:22,99 a real possibility and they planned for that culture and commercial fishing they 635 00:53:22,100 --> 00:53:27,01 said there was opportunities for those boat building and of course Forest Products 636 00:53:27,01 --> 00:53:32,34 cargo him there was also thirty one other recommendations made to the harbor 637 00:53:32,35 --> 00:53:38,19 district in the to the city in the county the about harbor development one of them 638 00:53:38,20 --> 00:53:42,87 you can see there's. Right there at the top the dedicated proactive Marine 639 00:53:42,88 --> 00:53:46,09 marketing function they said that that was something that was really missing that 640 00:53:46,10 --> 00:53:51,22 was something that really needed to be. Available there and that would include 641 00:53:51,23 --> 00:53:55,100 Marine dependent industrial marketing calls to barge feeder monitoring cruise ship 642 00:53:56,98 --> 00:54:01,15 marketing in dry and liquid bookmarking So pretty much all the other commodities 643 00:54:01,16 --> 00:54:04,12 that they said were appropriate for here they thought there was 644 00:54:04,13 --> 00:54:08,95 a real gap in in marketing direct marketing of those marine dependent thing they 645 00:54:08,96 --> 00:54:13,82 also said those agencies should support the transportation improvements to the road 646 00:54:14,28 --> 00:54:14,97 and to 647 00:54:15,21 --> 00:54:21,65 a bunch of highway projects such as the Buckhorn grade. So their vision was that 648 00:54:21,66 --> 00:54:22,08 there's 649 00:54:22,44 --> 00:54:26,35 a large parcel Marine dependent industrial kind of activities and be out on similar 650 00:54:26,35 --> 00:54:31,97 . That niche boat cargoes would also be at Samoa but also down in fields landing. 651 00:54:33,36 --> 00:54:34,02 That there would be 652 00:54:34,03 --> 00:54:40,85 a public terminal facility somewhere on the bay that the long term focus for 653 00:54:40,86 --> 00:54:45,81 Eurekas downtown and by them they meant downtown and toward B. 654 00:54:46,46 --> 00:54:52,77 Area was that that's where the marine science and tourism center would go. From 655 00:54:52,78 --> 00:54:56,63 homes for aqua culture and commercial fishermen these are permanent landside homes 656 00:54:56,67 --> 00:54:59,30 at that time you remember there was there wasn't one for 657 00:54:59,31 --> 00:55:04,55 a culture that the commercial fishing industry was was struggling to pick up pieces 658 00:55:04,56 --> 00:55:06,06 of land around so that they could have 659 00:55:06,07 --> 00:55:10,74 a permanent shore site area and active development of coastal feeders at the 660 00:55:10,75 --> 00:55:14,57 private term coastal feeders being that the barge service that we've been talking 661 00:55:15,18 --> 00:55:18,72 so those two thousand and three so in the last couple slides here what's changed 662 00:55:19,42 --> 00:55:22,59 since the harbor revitalization plan was completed in two thousand and three Well 663 00:55:22,60 --> 00:55:26,12 there's been several things one of them up theirs is diesels over two dollars 664 00:55:26,13 --> 00:55:26,48 a gallon 665 00:55:26,87 --> 00:55:30,45 a Marine in this very room with all those consultants back in two thousand and two 666 00:55:31,11 --> 00:55:32,34 saying well what would kick off 667 00:55:32,35 --> 00:55:35,81 a coastal barge service or what would be something like that and one of them said 668 00:55:35,82 --> 00:55:39,67 well if it doesn't want to over two dollars and we all laughed Well look we are now 669 00:55:39,67 --> 00:55:45,18 . The global economic downturn of course is has changed the face of things that's 670 00:55:45,19 --> 00:55:49,84 that we're all familiar with the state of California although they don't show it 671 00:55:49,85 --> 00:55:50,03 with 672 00:55:50,04 --> 00:55:55,46 a checkbook they recognize the importance of the state's deep water ports back in 673 00:55:55,47 --> 00:55:59,97 two thousand and you know as recently as two thousand and two they hardly recognize 674 00:55:59,98 --> 00:56:03,21 that they were part of the transportation system they thought they were just 675 00:56:03,99 --> 00:56:08,41 scattered independent kind of entities around they now have changed that the pulp 676 00:56:08,42 --> 00:56:12,20 mill course is two thousand and three is sold three times now it's now closed for 677 00:56:12,21 --> 00:56:13,83 eight hundred twenty four months and we've got 678 00:56:13,84 --> 00:56:17,50 a new stevedore in that period of time Westphal stevedores went out of business 679 00:56:17,51 --> 00:56:18,13 S.S.A. 680 00:56:18,42 --> 00:56:23,42 Took over the other changes that happen manger plan was completed in two thousand 681 00:56:23,43 --> 00:56:27,28 and six and that's important and relevant here because the harbor 682 00:56:27,42 --> 00:56:33,81 a lot of the harbor. Pieces of the harbor revitalization plan actually got folded 683 00:56:33,85 --> 00:56:37,21 into the humbled a management plan in our harbor section if you've seen it there's 684 00:56:37,22 --> 00:56:42,04 a harbor recreation conservation set of policies for each and some of those ended 685 00:56:42,05 --> 00:56:46,32 up as the harbor policies and that. The distinct followed through on 686 00:56:46,33 --> 00:56:50,75 a bunch of the recommendations that were in their short see shipping project we've 687 00:56:50,79 --> 00:56:54,46 we've started that back in two thousand and three with the Port of Oakland and I'm 688 00:56:54,47 --> 00:56:59,56 sure most of you recognize that we've also the most recently been working with us 689 00:56:59,57 --> 00:57:01,97 Stephen pepper here on on his thing as well as a 690 00:57:01,98 --> 00:57:08,43 a coast wide you know from Canada Mexico effort. We've acquired the 691 00:57:08,69 --> 00:57:11,48 the marine terminal member there was one of the recommendations was for 692 00:57:11,49 --> 00:57:15,69 a public terminal we picked up the redwood marine terminal complete feasibility 693 00:57:15,70 --> 00:57:20,19 study business planning as on all that and we're initiating the sequel process 694 00:57:20,20 --> 00:57:24,13 right now and that we created and filled the port marketing position memory was all 695 00:57:24,14 --> 00:57:28,43 that emphasis on marketing the port that's what Wilson Lacy is for and that's what 696 00:57:29,26 --> 00:57:33,41 when we filled in two thousand and seven permitted the landside aku culture 697 00:57:33,42 --> 00:57:38,44 facility that's over kind of the southern end of the redwood marine terminal that's 698 00:57:38,48 --> 00:57:42,74 that's taking care of an assistant city regular with the land say the fisherman's 699 00:57:42,75 --> 00:57:45,54 terminal project So that's again that's something that's been going on for 700 00:57:45,55 --> 00:57:51,16 a long time and we've helped with that So with that I'm going to turn it. 701 00:57:52,61 --> 00:57:57,21 Over to Wilson. David. 702 00:57:59,42 --> 00:58:04,96 Sales staff are good. And can get big better than this I mean if I had this kind of 703 00:58:04,97 --> 00:58:08,96 sales staff in the past I probably wouldn't be up here looking for money right now 704 00:58:09,89 --> 00:58:15,13 anyway get on with this program for you and I can read this. 705 00:58:18,83 --> 00:58:22,27 We're going to remember how to do it Mobile Harbor Granger guys probably heard 706 00:58:22,28 --> 00:58:23,87 about that recently I just want to give you 707 00:58:23,88 --> 00:58:28,42 a picture one there's one for sale in Maryland. And bring that up now because 708 00:58:28,43 --> 00:58:28,74 there's been 709 00:58:28,75 --> 00:58:35,01 a lot of talk about container and barge and this what it looks like. And of course 710 00:58:35,36 --> 00:58:39,61 the security and cruise ship we know what they look like and the reason I'm talking 711 00:58:39,62 --> 00:58:46,17 about this now says the targets this is Prince Rupert he leaves it on dock real 712 00:58:46,18 --> 00:58:50,63 very small it's not big probably and they're part of a half million T. 713 00:58:50,64 --> 00:58:56,06 Use because they just move out you know to stick around there I think this is South 714 00:58:56,15 --> 00:58:59,00 American port think it's San Antonio and chill 715 00:58:59,01 --> 00:59:04,97 a. Been the most these places this is a cluster and I'll talk about that 716 00:59:04,98 --> 00:59:09,80 a little bit as we go through the end of an in one ports call this is actually 717 00:59:09,81 --> 00:59:15,35 a Delano way that the commissioner mentioned earlier about investment in Port of 718 00:59:15,36 --> 00:59:19,61 Virginia these are the people that built that that's California state employees. 719 00:59:20,89 --> 00:59:25,09 And this is the Pasha's container or this is actually 720 00:59:25,10 --> 00:59:30,16 a posh car ship and it's called the oval so you'll see that in the sly they just 721 00:59:30,17 --> 00:59:36,91 want to know with them. Our marketing program is from zero seven to present. Are 722 00:59:36,92 --> 00:59:40,67 targeted commodities and when I say the commodities to the owners of the free we 723 00:59:40,68 --> 00:59:45,66 have to we've targeted them and they've been part of our targeted program. To steal 724 00:59:45,93 --> 00:59:50,71 autos containers tourist stuff we've talked about already are funding sources are 725 00:59:50,81 --> 00:59:53,05 probably private partnerships there's 726 00:59:53,06 --> 00:59:57,80 a number of those out there five or six banks right now are starting to freeze 727 00:59:58,26 --> 01:00:00,34 built build their infrastructure funds up there's 728 01:00:00,35 --> 01:00:05,18 a lot of investment people are looking to get their money out of cash now and start 729 01:00:05,26 --> 01:00:10,45 putting back into the US from an agency grant funding most of the folks here have 730 01:00:10,46 --> 01:00:13,98 been involved in that over time bonding of course in the Tiffy 731 01:00:13,99 --> 01:00:20,44 a program which is another government loan program to help build out. Facilities 732 01:00:21,07 --> 01:00:25,49 are target partners and these are actually mostly term operators and ship 733 01:00:25,50 --> 01:00:27,02 management companies there's 734 01:00:27,03 --> 01:00:32,03 a good crew shipping green highway system which we work with him along that. 735 01:00:36,20 --> 01:00:40,92 Are going to remember how to use this that this is us this is our town we're all to 736 01:00:40,93 --> 01:00:47,27 win each other something that's going on in. The harbor revitalization plan Dave 737 01:00:47,28 --> 01:00:51,33 talked about that on the distress of much humble Bay management when he talked 738 01:00:51,34 --> 01:00:57,76 about that the two thousand two thousand and eleven strategic plan that's 739 01:00:58,20 --> 01:01:03,25 really good Marine term primarily feasibility study was done legislative programs 740 01:01:03,53 --> 01:01:03,69 there's 741 01:01:03,70 --> 01:01:08,46 a number of those out there we can talk about those individually or you can ask the 742 01:01:08,47 --> 01:01:12,77 commissioners for we can give you the data on that if you need it the upstate 743 01:01:12,81 --> 01:01:16,76 Economic Development Commission is one of those groups that are involved I'm 744 01:01:16,77 --> 01:01:21,91 involved in that and they've appointed me to that also the city's involved in it 745 01:01:22,31 --> 01:01:22,72 this is 746 01:01:22,73 --> 01:01:27,39 a twenty one upstate counties the under-represented counties in California really. 747 01:01:28,50 --> 01:01:30,29 The west coast Corridor Coalition I'm 748 01:01:30,30 --> 01:01:35,68 a member of that as well and that's mostly the Coggs San Diego's the board chair. 749 01:01:36,06 --> 01:01:40,24 They also have an executive director and that there their main function as far as 750 01:01:40,25 --> 01:01:47,22 we're concerned is the Marine Highway System. This is the president's stimulus bill 751 01:01:48,20 --> 01:01:52,88 one of the twenty seven point five billion that's a R A The other was 752 01:01:52,89 --> 01:01:58,82 a one point five billion for infrastructure funding of we didn't qualify for the A 753 01:01:58,83 --> 01:02:03,74 or A because most of that goes into public transportation but there is some part 754 01:02:03,80 --> 01:02:07,96 possibilities and some talk of funding we're looking at that cruise shipping 755 01:02:07,97 --> 01:02:12,75 program for Cruise California we're looking at that with the cruise of some members 756 01:02:12,76 --> 01:02:19,29 of cruise the west these are primarily the California cities. Of San Diego Los 757 01:02:19,30 --> 01:02:24,69 Angeles San Francisco inner selves to do something in the off off season when they 758 01:02:24,70 --> 01:02:30,06 leave Alaska want to come and cruise California for the Go back to the Caribbean 759 01:02:30,75 --> 01:02:30,92 there's 760 01:02:30,93 --> 01:02:35,37 a lot of interest in that but we have infrastructure issues here as well so we will 761 01:02:35,38 --> 01:02:40,75 talk about that as we go. Steamship line recognition that was something that we 762 01:02:40,76 --> 01:02:46,65 worked on I think we're pretty well known now as far as carriers of both the whole 763 01:02:46,66 --> 01:02:46,92 group 764 01:02:46,93 --> 01:02:52,45 a list that I mentioned earlier not just containers other other carriers brickwall 765 01:02:52,46 --> 01:02:57,51 from both carriers are familiar with US A Marine Highway Program as that initiative 766 01:02:57,52 --> 01:02:59,37 has taken fires a lot 767 01:02:59,38 --> 01:03:02,83 a lot of work is being done on the east coast they'll probably be just for the 768 01:03:02,95 --> 01:03:05,73 launch either it's already being done to 769 01:03:06,55 --> 01:03:13,36 a smaller degree in the. Great Lakes region it's primarily the Canadian trade and 770 01:03:13,37 --> 01:03:18,39 getting the stuff off of those can just nightmares there. And 771 01:03:18,40 --> 01:03:22,58 a California goods move an action plan is something that we were heavily involved 772 01:03:22,59 --> 01:03:26,67 in and we still are on that next one the money that the commissioner mentioned 773 01:03:26,68 --> 01:03:31,71 earlier So those are sort of our programs and then we have an alternate power 774 01:03:31,72 --> 01:03:37,89 program in this so there's others to make sure. When forms are on on the list for 775 01:03:37,90 --> 01:03:41,67 up here and we're trying to assure that the you know the port kits that kind of 776 01:03:41,68 --> 01:03:45,56 business into this area we've already got some of the P.G. And E. 777 01:03:46,04 --> 01:03:50,16 Transformers in and I think Redwood Hannibal's for us. 778 01:03:55,70 --> 01:03:59,41 Specific a specific get Lutrell with my wish for 779 01:04:00,06 --> 01:04:03,64 a specific an ongoing marketing activities over the past twenty months and we'll 780 01:04:03,65 --> 01:04:04,46 talk about there's 781 01:04:04,47 --> 01:04:08,10 a whole list of things that we do I'm not going to school room because you know our 782 01:04:08,11 --> 01:04:14,30 time is limited but most of them are mentioned earlier but these are just things 783 01:04:14,31 --> 01:04:17,71 that are ongoing or in process or what we have worked on. 784 01:04:23,63 --> 01:04:29,37 Our advantages are many one. Mission Wilson mentioned it was we have 785 01:04:29,38 --> 01:04:33,11 a lot of space another one that we haven't mentioned as it were to name two days 786 01:04:33,12 --> 01:04:36,91 closer to Hong Kong that's a big deal Russian hundred thousand dollars 787 01:04:36,92 --> 01:04:39,27 a day off route ships so two days is 788 01:04:39,28 --> 01:04:45,36 a lot. Uncongested cargo. A rail connection 789 01:04:46,12 --> 01:04:50,90 between us in the US Well we certainly have that I think that I think we qualify we 790 01:04:50,91 --> 01:04:51,25 don't have 791 01:04:51,26 --> 01:04:57,65 a railroad but we certainly qualify as being on congested. Less deep water port in 792 01:04:57,66 --> 01:05:03,35 California and. That's a true that's a truism we have 793 01:05:03,61 --> 01:05:04,70 a deep water channel 794 01:05:04,71 --> 01:05:07,67 a lot of money's been spent the biggest part of your money is ever going to be 795 01:05:07,68 --> 01:05:09,83 spent is the dredging and 796 01:05:09,84 --> 01:05:15,08 a lot of that has been done. Especially in the middle channel that's that's big 797 01:05:15,09 --> 01:05:21,97 money they've verify there we've got I think we could bill for them. Capacity 798 01:05:21,98 --> 01:05:27,78 growth. This is where most of our products that come from if we're going to talk 799 01:05:27,79 --> 01:05:32,90 about just import exports refrigerated products are big in California especially 800 01:05:32,91 --> 01:05:34,82 the valley the valleys pretty close to us and there's 801 01:05:34,83 --> 01:05:39,70 a lot of cargo that moves you know three or four hundred miles in that valley that 802 01:05:39,88 --> 01:05:42,35 ends up going over other ports even L.A. 803 01:05:42,36 --> 01:05:45,07 There's stuff coming as far as reading that ends up going over L.A. 804 01:05:45,24 --> 01:05:47,39 Stuff from Oregon that ends up going over L.A. 805 01:05:47,40 --> 01:05:52,54 Believe it or not that's just the way that highway five corridor is works regional 806 01:05:52,55 --> 01:05:58,66 imports and we talk about that they mentioned earlier with the news that I used 807 01:05:59,25 --> 01:06:00,36 regional imports and that's 808 01:06:00,37 --> 01:06:05,20 a Sacramento Valley these cities. Hender land OK well I don't we we're not going to 809 01:06:05,21 --> 01:06:10,00 call it that since we're all part of the same state so we had imports and exports 810 01:06:10,54 --> 01:06:14,21 our farm products are the main thing out of the valley it's billions and billions 811 01:06:14,22 --> 01:06:20,56 of dollars in its moves and all kinds of different ways and our regional imports 812 01:06:20,57 --> 01:06:23,67 are the same way. There's 813 01:06:23,68 --> 01:06:28,24 a lot of the season with the Caesars distribution centers so the big the big. 814 01:06:30,82 --> 01:06:31,93 One to Target store that's 815 01:06:31,94 --> 01:06:35,61 a better way to explain or Costco or something like that they they take all their 816 01:06:35,62 --> 01:06:39,65 products and they receive them from different areas and then they they move them 817 01:06:39,66 --> 01:06:44,77 over that's how that's kind of how that's done. Domestic services and that's again 818 01:06:44,78 --> 01:06:48,52 a container on barge operation primarily in that what that means is you take stuff 819 01:06:48,53 --> 01:06:51,99 out of the containers leave the containers unimportant put them in big trucks move 820 01:06:52,00 --> 01:06:56,69 him another way we've got surplus land of plenty and we there's another big this is 821 01:06:56,70 --> 01:07:02,94 one of the biggest benefits we have foreign troops. Were an enterprise zone. A 822 01:07:02,95 --> 01:07:06,77 customs area. Coast Guard regional H.Q. 823 01:07:06,77 --> 01:07:13,45 . Current economic pictures allows when you have extra time for us to do 824 01:07:13,46 --> 01:07:18,77 a lot of evaluating official access to international gateways we certainly have 825 01:07:18,78 --> 01:07:23,58 that you can get in and out of the space in an hour. If you going into San 826 01:07:23,59 --> 01:07:28,41 Francisco you've got to go forty miles out of Kentucky hours to get services Kobe 827 01:07:28,42 --> 01:07:32,92 believe it or not the ships have to sit out their way for the pilots and I think we 828 01:07:32,93 --> 01:07:38,26 have exceptional community and labor support here especially in the business sector 829 01:07:38,27 --> 01:07:45,25 at least from my experience and I think that it's. And what we're doing here today 830 01:07:45,29 --> 01:07:45,82 is it is 831 01:07:45,83 --> 01:07:55,40 a good example of that. Cooperation. I 832 01:07:55,41 --> 01:07:58,81 mentioned the distance is in times I thought this might be something that's worth 833 01:07:58,82 --> 01:08:04,00 a flash today seaward fifty eight hundred miles from Hong Kong versus L.A. 834 01:08:04,67 --> 01:08:08,88 At about sixty three hundred in Oklahoma sixty one so 835 01:08:08,89 --> 01:08:10,50 a ship can move up one hundred miles 836 01:08:10,51 --> 01:08:17,77 a day. And this is. This 837 01:08:17,78 --> 01:08:23,84 is our this is what we all have offered here we have exactly the same things sort 838 01:08:23,85 --> 01:08:29,20 of Los Angeles provide the same thing that Port of Oakland Seattle any other four 839 01:08:29,21 --> 01:08:34,24 provides we have those here in the bay and I don't know how many people remember 840 01:08:34,28 --> 01:08:38,82 you know that bunch or the business community that's involved with Ford and that's 841 01:08:39,08 --> 01:08:44,32 a very special thing in the planning concept. Because if you don't have customs you 842 01:08:44,33 --> 01:08:48,77 don't have Homeland Security you know the big problem in the modern world anyway. 843 01:08:50,96 --> 01:08:52,64 The market constraints we know we have 844 01:08:52,65 --> 01:08:58,35 a small market here as mentioned earlier. We don't know what our what our economic 845 01:08:58,36 --> 01:09:05,34 outlook is at least for now in. Underdeveloped container support 846 01:09:05,35 --> 01:09:06,66 services we don't have 847 01:09:06,67 --> 01:09:11,40 a lot of that we don't have trans loading so these regional we don't even really 848 01:09:11,41 --> 01:09:11,54 have 849 01:09:11,55 --> 01:09:15,24 a local regional or nation policy I think that's what the commissioners are trying 850 01:09:15,25 --> 01:09:21,61 to put together here. We have. Plenty of suitable property. 851 01:09:22,57 --> 01:09:27,67 Somewhere constraints obviously are going to be railroad control and private hands 852 01:09:27,68 --> 01:09:32,74 or a moment so we don't really have any control over it and 853 01:09:33,24 --> 01:09:38,69 a uniform public court policy will stay we don't have that we don't even have it as 854 01:09:38,70 --> 01:09:42,98 a national policy and almost every other state in the union has 855 01:09:42,99 --> 01:09:47,81 a policy where the state is involved or the so we're still 856 01:09:47,82 --> 01:09:52,40 a complete local policy so it's almost like we're in the wild west still there to 857 01:09:52,41 --> 01:09:53,59 the rest of the world so you have 858 01:09:54,10 --> 01:09:58,89 a small port competing with itself and other ports in the area that's what 859 01:09:58,90 --> 01:10:03,75 California is like they've been working hard I mean really hard to get that point 860 01:10:03,76 --> 01:10:08,00 across to the state and I think we're starting to do it that's what the goods 861 01:10:08,01 --> 01:10:12,59 movement action plan did that. In two thousand and six there was 862 01:10:12,60 --> 01:10:19,48 a cheer that Kappa at the time that's one solution was. Near term 863 01:10:19,63 --> 01:10:20,19 outlook 864 01:10:21,42 --> 01:10:26,94 a Marine Highway system activated Redwood terminal phase one multipurpose which was 865 01:10:26,95 --> 01:10:33,37 mentioned earlier by David foreign trade zone trans lowball facilities in Bonn 866 01:10:33,38 --> 01:10:38,90 facilities if if we don't know what that is people can always ask and we'll give it 867 01:10:38,91 --> 01:10:45,37 a cruise facility of some type of culture terminal completed fishermen. 868 01:10:46,84 --> 01:10:50,64 And this was talked about earlier so I'm just going to let you read it off of the 869 01:10:50,65 --> 01:10:57,59 map for. A long term outlook ideas and potentials. 870 01:10:59,67 --> 01:11:00,41 We've had 871 01:11:00,42 --> 01:11:04,81 a lot of discussion on that already so I'm just going to give it logistic park 872 01:11:04,82 --> 01:11:08,65 clusters I thought I'd mention that in a mobile phone network connection it's 873 01:11:08,66 --> 01:11:13,06 a big deal and I think the last item I have here is the California interregional 874 01:11:13,63 --> 01:11:18,51 intermodal system this is something that Senator Feinstein put together of when I 875 01:11:18,52 --> 01:11:22,14 was in Oakland share actually funded a study on it and what it is is 876 01:11:22,15 --> 01:11:29,14 a rail network that replaces. This primarily started by the farmers to get 877 01:11:29,42 --> 01:11:34,08 trucks off of the highways and on to some regional intermodal system where the 878 01:11:34,09 --> 01:11:38,59 state of California so big that's almost like a country so that that highway that 879 01:11:38,100 --> 01:11:42,23 a real short line railroad system in the Comes 880 01:11:42,48 --> 01:11:46,100 a state of California real road system and we call that service for no other. 881 01:11:50,64 --> 01:11:56,76 No no other way in Akron him together. This is this is 882 01:11:56,77 --> 01:12:02,14 a red wooden. And this is based on what the board's already approved some of this 883 01:12:02,15 --> 01:12:08,35 data we're at this process now of getting in or if you out on the street to do your 884 01:12:08,36 --> 01:12:14,43 design and engineering for the conceptual part of it. If that gets approved say by 885 01:12:14,44 --> 01:12:18,66 the end of next year or the middle part of two thousand and ten construction can 886 01:12:18,67 --> 01:12:23,41 commit if we course we have the funding in the board approves it and then we can be 887 01:12:23,42 --> 01:12:29,96 operational ideally around two thousand and thirteen just despite the sheer fact of 888 01:12:29,97 --> 01:12:34,54 time so there's no short term thing would probably be in the two thousand and 889 01:12:34,55 --> 01:12:40,48 thirteen range if we everything works out the way we plan it. Phase two which is 890 01:12:40,52 --> 01:12:46,01 what we've talked about in the past so much the container operation they can be run 891 01:12:46,02 --> 01:12:49,81 concurrently but generally it would work something in that order and then if we 892 01:12:49,82 --> 01:12:50,04 built 893 01:12:50,05 --> 01:12:54,17 a cruise dock we would do it in the same way Chris doc doesn't have to be which you 894 01:12:54,18 --> 01:12:54,48 have to have 895 01:12:54,49 --> 01:12:59,46 a nice place for the folks to get off the ship and to get rid can't just have them 896 01:12:59,47 --> 01:13:02,38 put them on and some lighter if three years old got to have 897 01:13:02,39 --> 01:13:03,99 a way for them to you know have 898 01:13:03,100 --> 01:13:10,96 a nice way to move. And then. This sort of 899 01:13:11,47 --> 01:13:17,07 I think I'm running out of time here folks. Commissioners are getting antsy this is 900 01:13:17,07 --> 01:13:22,54 . A theoretical economic and. 901 01:13:23,76 --> 01:13:25,74 Item for example of 902 01:13:25,75 --> 01:13:29,80 a container terminal this would be something similar to Prince Rupert with one ship 903 01:13:29,81 --> 01:13:34,02 Call it be about two hundred fifty the economic value is about five hundred fifty 904 01:13:34,22 --> 01:13:41,09 million to the local area on an investment of. Probably sixty million sixty five 905 01:13:41,10 --> 01:13:47,82 million something like that. And that's based on just those those those numbers. I 906 01:13:47,83 --> 01:13:51,82 don't think it's significant but it's something I thought people might want to take 907 01:13:51,83 --> 01:13:58,47 a look at. Says summit 908 01:13:58,85 --> 01:13:59,50 information 909 01:13:59,51 --> 01:14:04,52 a Department of Transportation is predicting and the commission Wilson had that 910 01:14:04,80 --> 01:14:09,71 this is next to an extract of that that I did base to twenty twenty five Most of 911 01:14:09,72 --> 01:14:14,33 them one out twenty thirty five. Ports Gross in megacities is counter to the 912 01:14:14,34 --> 01:14:18,39 current long range planning there's nowhere in the world where they're building big 913 01:14:18,40 --> 01:14:21,89 ports in big cities anymore they're building the ports outside the cities and 914 01:14:21,90 --> 01:14:26,52 smaller communities smaller areas and less congested areas and bring stuff in so 915 01:14:26,53 --> 01:14:32,64 the servicing the mega-cities by way of because it just an example up here in this 916 01:14:32,65 --> 01:14:33,40 area you can build 917 01:14:33,41 --> 01:14:39,30 a freeway probably for three to five million dollars in law. Sandals to do the 918 01:14:39,31 --> 01:14:42,37 seven ten o'clock cost one hundred million to do that because of 919 01:14:42,67 --> 01:14:47,19 a small section of human a few miles so that's kind of that thing 920 01:14:47,69 --> 01:14:51,06 a global private interest infrastructure still is still looking 921 01:14:51,07 --> 01:14:55,94 a port that was mentioned earlier so I don't need to elaborate on. All 922 01:14:55,95 --> 01:15:02,37 international ports or expanding that was talked about. For short term job creation 923 01:15:02,78 --> 01:15:05,34 Panama Canal is is not going to be 924 01:15:05,35 --> 01:15:08,81 a real issue I think that was talked about the mission and Wilson 925 01:15:08,82 --> 01:15:10,55 a little bit so I don't need to go on 926 01:15:11,07 --> 01:15:14,44 a ship operations in reason I will mention that is 927 01:15:14,45 --> 01:15:16,24 a ship operations around one hundred thousand 928 01:15:16,25 --> 01:15:19,98 a day so you had six or seven more ships to be able to make this weekly service 929 01:15:20,22 --> 01:15:24,67 that you need to be able to provide just added up containers plus each of those 930 01:15:24,68 --> 01:15:26,70 ports with those ships have to call have to view 931 01:15:26,71 --> 01:15:33,71 a grid so we're talking about. Multiples of billions. All West ports 932 01:15:33,72 --> 01:15:37,43 and railroads are continuing to invest the railroads are investing eight or ten 933 01:15:37,44 --> 01:15:40,61 billion a year. The T.E.U. 934 01:15:40,62 --> 01:15:44,19 Numbers are still have to about the zero five level and I think we saw that 935 01:15:44,20 --> 01:15:50,70 demonstrated later earlier and non-governmental jobs are all all time high in both 936 01:15:50,71 --> 01:15:55,34 stayed in I think the county as well the only new jobs I've seen or been government 937 01:15:55,35 --> 01:16:01,08 jobs Thank you Mr to sticks came up through even worse than last couple of days and 938 01:16:01,09 --> 01:16:03,94 private funding is starting to loosen up we've been getting 939 01:16:03,98 --> 01:16:09,97 a lot of calls for people to look at our port lately. And 940 01:16:10,87 --> 01:16:11,40 finally 941 01:16:12,15 --> 01:16:17,82 a government N.G.O.s management labor needs to be consistently work together and I 942 01:16:17,83 --> 01:16:24,20 think that's what this forum do for us. A final thought I've been in this 943 01:16:24,83 --> 01:16:28,41 business I don't know other businesses so I only know this business I've been in it 944 01:16:28,42 --> 01:16:32,93 for over forty years so I've been both of them in the in the private and public 945 01:16:32,94 --> 01:16:39,16 sector so I don't have to explain that. But what I have what I. Well say is that 946 01:16:39,44 --> 01:16:44,73 ports are global assets of today in the modern world we don't ports along to the 947 01:16:44,94 --> 01:16:49,49 kind of the glow of we're going to have to move ten billion people from we over the 948 01:16:49,50 --> 01:16:53,81 next hundred years in the world and we need places for all of us to move our goods 949 01:16:53,82 --> 01:16:54,33 to and from 950 01:16:54,34 --> 01:17:00,13 a very small world today you can fly anywhere in the world in twelve hours so. 951 01:17:01,77 --> 01:17:01,90 There's 952 01:17:01,91 --> 01:17:06,76 a lot of interest in that in the Bay. At the Port of humble Bay certainly has 953 01:17:06,77 --> 01:17:13,67 a role I believe and. Private Investment believes the humble Bay has it if if 954 01:17:13,75 --> 01:17:19,07 they can get the community. The feel from the community that we we want to all move 955 01:17:19,08 --> 01:17:23,30 in the same direction that was mentioned earlier by both commissioners and I think 956 01:17:23,31 --> 01:17:28,75 that if we continue to move in the direction that we're going I think the long term 957 01:17:28,94 --> 01:17:34,30 will be right there and I don't think we need to have have any fear of creating 958 01:17:34,31 --> 01:17:40,17 jobs. We're talking about just the cost of the jobs themselves so about over 959 01:17:40,18 --> 01:17:44,96 a thousand man years and be created just by building on these from over there so 960 01:17:44,97 --> 01:17:45,54 that's a lot 961 01:17:45,86 --> 01:17:49,74 a lot of work for on the front end not just permanent jobs but these are front end 962 01:17:49,75 --> 01:17:54,70 jobs for people to start work in hammer nails and that's what I. Think you will 963 01:17:54,71 --> 01:17:59,65 send OK Thank you. I would take questions from the very first order. 964 01:18:01,98 --> 01:18:08,36 You want to sit next to my farewells and the people for you. You can sit here on 965 01:18:08,40 --> 01:18:15,17 this question. This is for it. This is for Dave 966 01:18:15,18 --> 01:18:15,86 Hall is just 967 01:18:15,87 --> 01:18:19,43 a matter of some background when you mention the twenty five percent last cargo and 968 01:18:19,92 --> 01:18:21,07 the one nine hundred eighty S. 969 01:18:21,62 --> 01:18:27,04 The leakage and then the and just this is the understanding for me and then the 970 01:18:27,15 --> 01:18:30,65 deepening project that happened was that twenty five percent ever recovered after 971 01:18:30,66 --> 01:18:32,10 that it wasn't 972 01:18:32,36 --> 01:18:36,52 a great part of the twenty five percent was the closing of the Simpson Pokemon OK 973 01:18:37,23 --> 01:18:40,70 but there was some other there was some lumber that used to be shipped out here in 974 01:18:40,71 --> 01:18:44,65 that time period ended up going to Coos Bay There were some other commodities that 975 01:18:44,71 --> 01:18:49,35 to get the private sector here concerned that they were going to lose it all if we 976 01:18:49,36 --> 01:18:55,33 didn't keep the channel so we did it did the right you did make it safer as we 977 01:18:55,34 --> 01:19:00,68 remember that was one of the things we every year in recent memory the record that 978 01:19:01,60 --> 01:19:05,44 we probably lost somebody on the bar during the winter time commercial fishermen 979 01:19:05,45 --> 01:19:10,08 wise until that evening project since then we haven't had anybody write down 980 01:19:10,56 --> 01:19:15,48 a major safety improvement it also eliminated instantly the light loading threat 981 01:19:15,49 --> 01:19:18,78 that's now it was. At the shippers discretion whether they wanted to come in like 982 01:19:18,79 --> 01:19:20,17 that or not it was in 983 01:19:20,18 --> 01:19:24,39 a requirement and that really they really helped the competitive edge for the ship 984 01:19:24,40 --> 01:19:28,75 which is all right thank you have one other question that is regarding the two 985 01:19:28,76 --> 01:19:32,86 thousand three right Elise ation plan which I was around when that was happening 986 01:19:32,87 --> 01:19:39,01 and just getting it I was just curious whether the other options suggested by. 987 01:19:41,16 --> 01:19:47,80 The PM. Were they ever marketed also outside of. The 988 01:19:48,22 --> 01:19:51,94 harbor facilities the port facilities itself so in other words 989 01:19:52,86 --> 01:19:56,65 a marine science facility or any of the things had they been also marketed in the 990 01:19:56,66 --> 01:19:59,57 same sort of way yeah they they really haven't it's it's 991 01:19:59,58 --> 01:20:04,45 a lot like the city's waterfront revitalization program you know it had eleven high 992 01:20:04,46 --> 01:20:07,75 priority projects when it was in it was adopted in one thousand nine hundred four 993 01:20:08,27 --> 01:20:13,14 and it really depended upon you know which which projects could get funding which 994 01:20:13,15 --> 01:20:13,64 ones were 995 01:20:13,65 --> 01:20:17,57 a little higher profile which ones had some interest or some land owner participation 996 01:20:17,58 --> 01:20:21,53 or something as that as to kind of this flexible sort of implementation schedule of 997 01:20:21,54 --> 01:20:25,79 those we've done the same thing I think on on our side the marine science and 998 01:20:25,80 --> 01:20:31,10 tourism center we have worked with the city on that. We It kind of stalled out when 999 01:20:31,28 --> 01:20:31,63 we had 1000 01:20:31,64 --> 01:20:36,96 a master tenant for the facility in that in that kind of fizzled and so it's been 1001 01:20:36,97 --> 01:20:41,46 a little bit on the backburner since then but it's still it's still in the plan as 1002 01:20:41,47 --> 01:20:44,67 far as I'm concerned it's still well enough that those are things that you know if 1003 01:20:44,68 --> 01:20:48,24 the committee thinks there that maybe we could have had more emphasis then we can 1004 01:20:48,25 --> 01:20:53,46 certainly bring those up as up parts of the discussion and that's kind of part of 1005 01:20:53,47 --> 01:20:57,22 what we're trying to do is that we have that you have to have some focus in order 1006 01:20:57,23 --> 01:21:03,35 to to make progress and so that the district has been more focused on those aspects 1007 01:21:03,39 --> 01:21:05,13 than some of these other one that was why 1008 01:21:05,14 --> 01:21:11,37 a broader question is I think. Land 1009 01:21:12,11 --> 01:21:16,37 that we should try to leave as much background information from. That is 1010 01:21:16,38 --> 01:21:21,10 a committee to help us go forward if there's anything that transpired other than 1011 01:21:21,21 --> 01:21:28,18 since we already know from. The marketing side of the port where that it's kind 1012 01:21:28,19 --> 01:21:32,13 of sitting right now what that whole thing works like as if And since we're looking 1013 01:21:32,14 --> 01:21:36,32 at other alternatives if any of those that have been pursued in any sort of way it 1014 01:21:36,33 --> 01:21:40,33 would be great to get that informations Thank you Mike that's helpful live in bed 1015 01:21:40,34 --> 01:21:43,67 if I could just just to finish off two there's still to the on the fisherman's 1016 01:21:43,68 --> 01:21:44,70 terminal was of course 1017 01:21:44,71 --> 01:21:47,76 a landside fishing thing was one of Peavey's recommendations that's the city's 1018 01:21:47,77 --> 01:21:51,57 nearly nearly done with that we've been supporting it all on working with the city 1019 01:21:51,58 --> 01:21:56,71 on anyone who culture landside term let some that we've worked on for twenty five 1020 01:21:56,72 --> 01:22:00,22 years and it's it's permanent We still need 1021 01:22:00,23 --> 01:22:01,64 a master tenant for that release we got 1022 01:22:01,65 --> 01:22:05,35 a place and we have permit we have secret document done on it so we've been making 1023 01:22:05,36 --> 01:22:09,53 progress on that to me and so it hasn't just been the cargo aspect it's been it's 1024 01:22:09,54 --> 01:22:16,42 been pretty much across the board and. Terminal when you 1025 01:22:16,43 --> 01:22:21,19 have the full term and all or no but I mean you know like a we have 1026 01:22:21,23 --> 01:22:25,79 a team and or day cares to have her here and so on when these are two very small 1027 01:22:25,80 --> 01:22:30,06 projects and some communities have been awful culture are things and communities 1028 01:22:30,07 --> 01:22:37,02 and you know they expand so I mean that the how in our district and we think 1029 01:22:37,07 --> 01:22:41,48 that well I think the I think the concept was again kind of like using the city is 1030 01:22:41,49 --> 01:22:45,02 an analogy with the waterfront revitalization plan the concept was that these would 1031 01:22:45,03 --> 01:22:47,05 be essentially cedes going to use in 1032 01:22:47,06 --> 01:22:51,25 a redevelopment model if you will these will be where the public investment is that 1033 01:22:51,26 --> 01:22:55,04 then the private sector will say oh look the public serious about this they've 1034 01:22:55,05 --> 01:23:00,30 cleaned up this property issue this contamination issue this access issue whatever 1035 01:23:00,83 --> 01:23:06,15 and then they can build on that so I think to that end the first step is is or has 1036 01:23:06,16 --> 01:23:10,65 been from the districts perspective will see how that how this process burns out 1037 01:23:10,66 --> 01:23:15,51 but it is to actually kind of work through that list of harm reviles ation plan 1038 01:23:15,52 --> 01:23:19,81 recommendation. Try to implement those and then move on from those assuming that 1039 01:23:19,82 --> 01:23:26,07 those are successful. I was struck by the veil of the industrial acreage numbers 1040 01:23:26,08 --> 01:23:32,55 that you brought out and in comparison with other ports and the previous studies 1041 01:23:32,56 --> 01:23:37,30 that have been done the revitalization plan that read with the plan of all 1042 01:23:37,31 --> 01:23:39,85 identified that fact is as 1043 01:23:39,86 --> 01:23:46,09 a key advantage to this port and even though you know Item three D's been struck 1044 01:23:46,32 --> 01:23:52,51 from the agenda which which brings up that question. It has been brought up and I'm 1045 01:23:52,52 --> 01:23:56,39 wondering if starting to chip away at one of those core fan 1046 01:23:56,40 --> 01:24:02,16 a change that this party has would be counterproductive. In the long run well if 1047 01:24:02,17 --> 01:24:06,75 you have surface left and there derelict in their living and they're not deriving 1048 01:24:06,76 --> 01:24:12,68 their can only for the left home. There was some economic. Benefit for the land 1049 01:24:12,69 --> 01:24:13,25 holders to get 1050 01:24:13,26 --> 01:24:19,07 a brownfield Grant cash and that would be market forces in the existing industrial 1051 01:24:19,08 --> 01:24:24,09 in the remaining might be of greater value because it was more scarce so I don't 1052 01:24:24,32 --> 01:24:30,20 think you necessarily need to maintain all eight hundred acres. And that's really 1053 01:24:30,21 --> 01:24:30,94 the more 1054 01:24:31,40 --> 01:24:35,81 a subject of for the private community so in other words we weren't saying we're 1055 01:24:35,82 --> 01:24:41,07 going to go you know condemn something ice more like if there are surplus lands and 1056 01:24:41,08 --> 01:24:45,92 they are causing pollution and they are driving economic benefit then possibly we 1057 01:24:45,93 --> 01:24:51,65 should to. Use want to make one I've made an embarrassing mistake and David 1058 01:24:51,66 --> 01:24:57,38 Springer's the alternate for new David David's in the back and so he's an alternate 1059 01:24:57,39 --> 01:25:02,90 for the committee and when I introduced people I looked up so sorry for that but 1060 01:25:03,14 --> 01:25:06,81 thank you for you I guess I mean I can I would like to dress the 1061 01:25:07,32 --> 01:25:11,07 a little bit on that yeah I think you're right I mean it has advantages but how 1062 01:25:11,08 --> 01:25:14,78 much of the how much of that advantage do you really need is the kind of question 1063 01:25:14,79 --> 01:25:19,67 you know in terms with you. Really need twice the acreage of you know the Port of 1064 01:25:19,71 --> 01:25:24,20 Oakland in order to maintain an advantage of having surplus land I would argue that 1065 01:25:24,94 --> 01:25:29,38 I could say you could make an argument that probably not other ports have started 1066 01:25:29,39 --> 01:25:34,94 to look at conversions of some of those waterfront and industrial lands to other 1067 01:25:34,95 --> 01:25:40,95 uses and certainly we've had landowners around what they consider them only to be 1068 01:25:40,96 --> 01:25:44,42 told that they can't do it because it doesn't fit necessary Sony and those are 1069 01:25:44,43 --> 01:25:46,31 things so it kind of squashes 1070 01:25:46,32 --> 01:25:53,31 a lot of what we know of potential for whatever may be coming up. So 1071 01:25:53,32 --> 01:25:58,12 all I'm saying is that they know they're there. There is there is potential 1072 01:25:58,75 --> 01:26:03,01 potentially potential I suppose that you know that we do we could be looking at 1073 01:26:03,02 --> 01:26:09,41 other options but we really get kind of like stopped right at the No Step one I do 1074 01:26:09,42 --> 01:26:14,20 know that there are enough and there have been creative uses of course in the Penn 1075 01:26:14,21 --> 01:26:20,86 industrial land around Mobile Bay You know to try and hopefully use what they can 1076 01:26:20,87 --> 01:26:26,78 to do what's possible but again you shouldn't have to skirt so many things I think 1077 01:26:26,79 --> 01:26:30,20 in terms of if there's really good ideas for economic development that people 1078 01:26:30,21 --> 01:26:35,37 really can put people to work actually build and occupy and use land for better 1079 01:26:35,38 --> 01:26:37,12 uses which could be 1080 01:26:37,13 --> 01:26:44,18 a little more open to that is their benchmark for the new. Coastline 1081 01:26:44,19 --> 01:26:50,69 that's available the. Necessary acres to to preserve his 1082 01:26:50,75 --> 01:26:56,71 industrial depending on the industry. It depends on the industry it what you're 1083 01:26:56,72 --> 01:27:00,90 talking about so it just depends like I said we have quite 1084 01:27:00,91 --> 01:27:07,69 a bit more and then some other very successful ports and so the question 1085 01:27:07,70 --> 01:27:11,75 will end and so I guess it's one of those things are we limited I don't know you 1086 01:27:11,76 --> 01:27:14,79 know I have to say it's like one of the things I've never liked about the 1087 01:27:14,80 --> 01:27:19,58 revitalization plan was the name there I never really liked the idea of 1088 01:27:19,59 --> 01:27:21,76 revitalizing a Mulvey vitalizing 1089 01:27:21,77 --> 01:27:26,33 a movie I can go for but revitalizing just kind of comes from this percent very 1090 01:27:26,34 --> 01:27:30,62 sort of you know rear view mirror perspective that I never really you know they 1091 01:27:30,63 --> 01:27:37,06 could never really get you know myself you know not maybe not having as much. 1092 01:27:39,85 --> 01:27:46,50 Investment in sort of the past. You know the in personally you know that just never 1093 01:27:46,51 --> 01:27:51,39 really seen that is me I mean I understand it for many of them saying I just didn't 1094 01:27:51,94 --> 01:27:57,91 I always thought of vital evasion and I thought this. Could start moving forward in 1095 01:27:57,92 --> 01:28:04,42 that with that and that. I'd like to see that the questions directed to Mr Lacy and 1096 01:28:04,43 --> 01:28:07,95 I'd like you know Wilson to handle and then I'd like to move to 1097 01:28:07,96 --> 01:28:11,04 a panel with you that these guys come out tonight so let's take 1098 01:28:11,05 --> 01:28:14,51 a couple more three questions of could pass the mike down Dave to Greg and then 1099 01:28:14,52 --> 01:28:17,43 great person to Jack when they're after just 1100 01:28:17,44 --> 01:28:23,85 a quick question on container barge shipping but I know that now it obviously works 1101 01:28:23,86 --> 01:28:27,92 for us to get our fuel here by barge because we're doing that and I and I noticed 1102 01:28:27,93 --> 01:28:31,72 that you mentioned in your conversation that things were going to change once 1103 01:28:31,82 --> 01:28:33,41 diesel hit two dollars 1104 01:28:33,48 --> 01:28:38,35 a gallon and it obviously has done that and it's going to continue to rise but have 1105 01:28:38,36 --> 01:28:45,27 we looked at the economic viability of moving goods. On barge from say San 1106 01:28:45,28 --> 01:28:50,73 Francisco to here versus trucking and what is what is that what is that threshold. 1107 01:28:55,71 --> 01:29:02,65 May thing is this working. OK the main the main issue is it is 1108 01:29:02,66 --> 01:29:09,28 the Port of Oakland they have. Restrictions on their container 1109 01:29:09,29 --> 01:29:11,49 ports they don't have really 1110 01:29:12,37 --> 01:29:18,80 a barge port per se so something has to be developed at the Port of Oakland 1111 01:29:19,51 --> 01:29:25,64 in order to do those kinds of transfers Additionally it's probably not 1112 01:29:25,65 --> 01:29:29,77 economical because there's going to have to be some trucking done internally. 1113 01:29:31,00 --> 01:29:37,17 Having said that. If you go to another area where you still you're going to still 1114 01:29:37,18 --> 01:29:40,39 have to do some short haul trucking there's no way you can get around it if you can 1115 01:29:40,40 --> 01:29:45,92 use barge there's always going to be some local trucking but if you get an area 1116 01:29:45,93 --> 01:29:50,83 where it's built up specifically for BARGE channeling much like they do in Europe 1117 01:29:51,54 --> 01:29:52,41 then it's 1118 01:29:52,42 --> 01:29:57,35 a very viable way to move freight from one part of the state or one part of the 1119 01:29:57,64 --> 01:30:02,29 country to another but it has to be set up specialized and we haven't done that I 1120 01:30:02,30 --> 01:30:08,51 mean we're still. Every place else in the world. And we still use chess' in the 1121 01:30:08,52 --> 01:30:13,84 United States that just gives you an idea of how we have to rethink the way we're 1122 01:30:13,85 --> 01:30:18,07 doing sustainability and I think that's one of the good things about this economic 1123 01:30:18,08 --> 01:30:22,51 downturn I was mentioning earlier is that the economic downturn allows us to get 1124 01:30:22,52 --> 01:30:27,48 time to start rethinking the way we have progress on goods movement and I think 1125 01:30:27,49 --> 01:30:28,83 that's kind of 1126 01:30:29,03 --> 01:30:33,12 a resting period kind of helps sometimes when you have the movement I don't know if 1127 01:30:33,13 --> 01:30:38,41 that answers your question but at least it gives you specific container on barge 1128 01:30:38,42 --> 01:30:43,48 has not been viable because of the costs for him in the. Passed. 1129 01:30:46,86 --> 01:30:52,94 One. Wall. When he presented it rightly. 1130 01:30:55,73 --> 01:31:00,39 So absent the open issue is it something that could be done and if you were going 1131 01:31:00,40 --> 01:31:05,33 to look at the bill when you look at trying to partners with her partner who was 1132 01:31:05,34 --> 01:31:10,39 someplace else would you actually know I'm going to I mean I should question to. 1133 01:31:12,48 --> 01:31:17,60 Answer the why thing really quickly why you were so that you see so that's public 1134 01:31:17,65 --> 01:31:22,84 utility commission if it's rates are fixed much like it used to be here with the 1135 01:31:22,85 --> 01:31:27,17 rear of so that'll answer their question real quickly so that why can't be used as 1136 01:31:27,18 --> 01:31:31,63 an example unless we kind of go back to the future. Then and I'm sorry I think 1137 01:31:31,90 --> 01:31:37,60 thank you Jacqueline please he said but you have had recently 1138 01:31:37,61 --> 01:31:42,04 a lot of calls about interest in the port could you characterize what what their 1139 01:31:42,35 --> 01:31:48,42 interest is that they're interested in who they are and like well I guess I'm not 1140 01:31:48,43 --> 01:31:54,02 at liberty to say who they are but at this point but what I'm talking about is it's 1141 01:31:54,03 --> 01:31:59,52 investment face it's investment bankers are looking and what they're looking for 1142 01:31:59,66 --> 01:32:04,30 his real estate waterfront will real estate because it's fairly limited on the West 1143 01:32:04,31 --> 01:32:09,34 Coast East Coast has a lot of ports but the west coast doesn't. And 1144 01:32:09,35 --> 01:32:15,51 a question from the audience he. May have the mike with you just make sure we're. 1145 01:32:16,66 --> 01:32:20,26 Doing something this from. Just a follow up 1146 01:32:20,27 --> 01:32:24,45 a couple things in your presentation Wilson you mentioned there was one slide in 1147 01:32:24,46 --> 01:32:29,95 there that mentioned that. Freshwater public would move eleven million metric tons 1148 01:32:29,99 --> 01:32:30,51 of pulp 1149 01:32:30,70 --> 01:32:36,31 a year Bob Simpson has said publicly that he's not going to use the port at all in 1150 01:32:36,32 --> 01:32:41,61 his operations and I guess my question goes to more the short term vision. The 1151 01:32:41,62 --> 01:32:47,58 things that you're looking at is. Time I seem to be ten twelve years we're looking 1152 01:32:47,59 --> 01:32:53,86 at the rest of the ports coming up to speed before then the rail rail issue based 1153 01:32:53,87 --> 01:32:55,74 on the cleanup that needs to be done and 1154 01:32:55,75 --> 01:32:59,93 a consent decree by the. The infrastructure work that needs to be done what are you 1155 01:32:59,94 --> 01:33:05,70 guys looking at this far short term. You know business around the bay as far as 1156 01:33:06,11 --> 01:33:08,98 moving goods this gentleman from me here had a you know 1157 01:33:08,99 --> 01:33:14,93 a really good question about this short sea shipping component and I'd like to 1158 01:33:14,94 --> 01:33:20,80 maybe get an answer from Steven as well about the viability of container on barge 1159 01:33:20,81 --> 01:33:26,41 and are there any other. Places besides Oakland that can handle this kind of goods 1160 01:33:26,42 --> 01:33:29,38 movement and how how soon could that be up and running. 1161 01:33:34,37 --> 01:33:40,98 But I would like to get the short term. What I'm working on. And have been for some 1162 01:33:40,99 --> 01:33:44,26 time with this post. Is 1163 01:33:44,30 --> 01:33:50,76 a Marine Highway System from Call of Vancouver to and Sonata and that includes 1164 01:33:50,77 --> 01:33:57,56 all of the cities in between so you could say just all it is is matter numbers you 1165 01:33:57,57 --> 01:34:03,31 got twenty barges got ten barge five barges so it limits the amount of capacity but 1166 01:34:03,32 --> 01:34:04,04 if you just look at 1167 01:34:04,05 --> 01:34:08,36 a ten barge scenario you could take eight hundred fifty three footers off the road 1168 01:34:08,40 --> 01:34:10,53 every day. That's 1169 01:34:10,54 --> 01:34:14,30 a lot of trucks when you look at the border congestion the investments that they're 1170 01:34:14,31 --> 01:34:20,17 making at the border crossings even pre-clear all that stuff in advance so so so 1171 01:34:20,18 --> 01:34:24,35 the answer that I'm giving you is yes container on barge could work very well 1172 01:34:25,03 --> 01:34:29,80 container on Row Row containers containers with trailers can work very well any one 1173 01:34:29,81 --> 01:34:34,47 of those numbers that an investor wants to invest in the difficulties will be at 1174 01:34:34,48 --> 01:34:38,99 the container ports in any of the big cities where you're going to have to kind of 1175 01:34:39,00 --> 01:34:44,88 have your own operation separately so that you can show stuff in and out of. The. 1176 01:34:47,38 --> 01:34:51,91 Well when you don't have the infrastructure you don't have the railroad. When are 1177 01:34:51,92 --> 01:34:55,29 you going to start looking at some of the other alternatives like redeveloping some 1178 01:34:55,30 --> 01:34:59,64 of the brownfields going with the shores the shipping route when those priorities 1179 01:34:59,65 --> 01:35:03,100 but that's right that's arriving not my in my mind to answer that's really David's 1180 01:35:04,01 --> 01:35:07,84 to answer because my mandate was primarily to work on the redwood marine terminal 1181 01:35:08,25 --> 01:35:11,84 when I came here and for the last twenty months that's exactly what I've been doing 1182 01:35:11,84 --> 01:35:13,81 . So 1183 01:35:13,82 --> 01:35:18,10 a short term Pete is is exactly all those things he said you know we're not married 1184 01:35:18,11 --> 01:35:22,39 to any particular thing we've got the revitalization plan as it is kind of guidance 1185 01:35:22,40 --> 01:35:25,90 we've got the of all this meetings we've had like this through the strategic plan 1186 01:35:25,91 --> 01:35:30,18 that we've used as guidance the ACO culture facilities we're working on the 1187 01:35:30,19 --> 01:35:34,69 fisherman's terminal stuff working and we're working on the the shorts the shipping 1188 01:35:34,70 --> 01:35:38,07 with with Stephen and with Wilson on the on the even 1189 01:35:38,08 --> 01:35:43,79 a bigger picture for that can think all those things are short term issues but none 1190 01:35:43,80 --> 01:35:47,94 of them are going to be like tomorrow sort of things in any of these ports that 1191 01:35:47,95 --> 01:35:51,06 Mike was talking about I mean those are the you know those are longer term sorts of 1192 01:35:51,07 --> 01:35:57,89 things we're we're recasting the point we're we're vitalizing the port. So it's 1193 01:35:57,90 --> 01:36:01,97 a it's not something that you know tomorrow somebody is going to call up and say 1194 01:36:01,98 --> 01:36:05,90 Wilson I'm coming in that's what the stevedore companies for we still have all the 1195 01:36:05,91 --> 01:36:10,87 services now so when that shows up like the the engines for the the P.G.D. 1196 01:36:10,88 --> 01:36:16,19 Repair project things like that those are all absolutely critical to having 1197 01:36:16,20 --> 01:36:21,24 a port to be able to do that repair our ng of the power plant so those are what 1198 01:36:21,25 --> 01:36:24,86 we're looking to short term is is initiating all those projects we just talked 1199 01:36:24,87 --> 01:36:30,40 about plus being aware for any of these. Project cargo sorts of things that are 1200 01:36:30,41 --> 01:36:36,15 coming down the line as well as working on the cruise ship stuff so you know it's 1201 01:36:36,16 --> 01:36:39,85 a long list of stuff. That we've been working on and you've seen that before. 1202 01:36:43,35 --> 01:36:50,21 Right. And on that. Gentleman you very different projections 1203 01:36:50,22 --> 01:36:56,72 for trade. What it says is private in your industry perspective on current market 1204 01:36:56,73 --> 01:37:02,27 trends future prospects for shipping and industrial development around the bay and 1205 01:37:02,27 --> 01:37:08,93 . You know I guess I guess. We just started far in with Randy 1206 01:37:09,48 --> 01:37:14,29 and work back and that's given not more than five minutes each if you would 1207 01:37:14,30 --> 01:37:17,89 gentleman and then. You can kind of open up 1208 01:37:17,90 --> 01:37:22,45 a dialogue between yourselves and then move on to the larger community and the 1209 01:37:22,46 --> 01:37:22,66 media. 1210 01:37:34,00 --> 01:37:36,91 You know what the flow to make just for the flow over the next. 1211 01:37:43,22 --> 01:37:45,05 Day. Oh. 1212 01:37:50,50 --> 01:37:57,47 Well I mean we bought the ferryman turbo silly With heard about this for five 1213 01:37:57,48 --> 01:38:04,45 years. About the long term objective you know that of 1214 01:38:04,50 --> 01:38:09,75 as to what it could be or potentially could be. In you know we've been very 1215 01:38:10,11 --> 01:38:15,48 successful over there I mean we have all of those buildings for the most part we 1216 01:38:15,49 --> 01:38:20,68 still haven't the. Whole thing superstructure that we're we're trying to figure out 1217 01:38:20,69 --> 01:38:27,05 what do. But there are opportunities for that terminal in this bay and I don't 1218 01:38:27,06 --> 01:38:32,56 think right now. We should rule out any type of shipping transfer. 1219 01:38:34,11 --> 01:38:35,39 The West Coast ports are going to be 1220 01:38:35,40 --> 01:38:41,58 a capacity and when I say pass you mean it's not going to be because. They kicked 1221 01:38:41,59 --> 01:38:46,88 him containers but they have all kinds of issues with real estate problems there 1222 01:38:46,89 --> 01:38:52,66 real estate there is extremely expensive their infrastructure so constrained. They 1223 01:38:52,67 --> 01:38:58,21 don't have the rail capacity to meet some of the growth that's why Prince Rupert 1224 01:38:58,22 --> 01:39:05,14 was born in now is doing very well and will grow. Is doing the same. 1225 01:39:07,39 --> 01:39:13,51 May have capacity for for you know more containers but their routes again will take 1226 01:39:13,52 --> 01:39:18,58 significant investments you know Port of Los Angeles and Long Beach CA one billion 1227 01:39:18,59 --> 01:39:23,93 dollars because it costs them three times as much to do anything. So I don't think 1228 01:39:23,94 --> 01:39:27,95 we should rule out you know what kind of shipping industries can come in here you 1229 01:39:27,96 --> 01:39:32,78 know Stephen program right now I mean I've tried to put barging packages together 1230 01:39:32,79 --> 01:39:38,84 for summer users care even. It's just not economical right now we don't have enough 1231 01:39:39,04 --> 01:39:45,59 industrial. Users on that area that need the raw materials 1232 01:39:45,63 --> 01:39:46,96 imported in to fill 1233 01:39:46,97 --> 01:39:53,90 a barge they can't do it. You know we try to do some with fox farm. They ship 1234 01:39:53,91 --> 01:40:00,08 in by truck all of their you know people to realize that they mix from Canada. You 1235 01:40:00,09 --> 01:40:01,97 know but we can't figure out 1236 01:40:01,98 --> 01:40:04,64 a way to get you know they used five six hundred times 1237 01:40:04,65 --> 01:40:10,93 a year I think it is. You know they take ten to thirteen trucks 1238 01:40:10,94 --> 01:40:15,64 a week but you can't put all that on one barge and bring it down and then have them 1239 01:40:16,10 --> 01:40:19,79 eat that image Tory cost for you know sixteen eighteen months you know to use that 1240 01:40:20,58 --> 01:40:25,37 that raw materials so there's there's constraints and you know we've tried to you 1241 01:40:25,38 --> 01:40:29,55 know piecemeal the barge out is that the way you're going to get something 1242 01:40:30,16 --> 01:40:36,79 a demand for that is is the you know. A pathway so we can I mean right 1243 01:40:36,80 --> 01:40:38,13 now we've got 1244 01:40:38,14 --> 01:40:42,24 a lot of advantages I mean we have had users look at our site they can employ over 1245 01:40:42,25 --> 01:40:48,08 two hundred fifty people. The investment in in those sites would be between fifty 1246 01:40:48,09 --> 01:40:52,66 to one hundred million dollars but those are long term you know deals and they 1247 01:40:52,67 --> 01:40:59,52 don't come together quickly. You know it's it's. It's 1248 01:40:59,53 --> 01:41:01,09 got to become more of 1249 01:41:01,10 --> 01:41:05,68 a business friendly environment where we're willing to consider you know what it 1250 01:41:05,69 --> 01:41:12,15 can be we need to look at ways to you know somehow streamline our permits. 1251 01:41:13,44 --> 01:41:16,61 You know we're looking you know at eight hundred twenty four most just to get 1252 01:41:16,84 --> 01:41:20,14 a secret document. And just went through about 1253 01:41:20,19 --> 01:41:27,07 a hundred page one to four years. You know so if we can somehow figure 1254 01:41:27,08 --> 01:41:31,36 out how we can get some at least baseline models for transportation infrastructure 1255 01:41:31,36 --> 01:41:34,57 . You know least we have a head start you know 1256 01:41:34,58 --> 01:41:38,80 a user can you know send their consults and here's here's the baselines is what we 1257 01:41:38,81 --> 01:41:43,24 know about biological you know conditions in the big you know this is what we know 1258 01:41:43,25 --> 01:41:49,18 about you know how the oyster industry could be affected you know because the 1259 01:41:49,19 --> 01:41:51,69 industrial water for this what this is not 1260 01:41:51,70 --> 01:41:53,98 a significant portion of it but it can employ 1261 01:41:53,99 --> 01:41:59,99 a significant portion of our community and. We need to get on 1262 01:42:00,35 --> 01:42:06,06 a path to figure out how to streamline those issues. Another thing that we have 1263 01:42:06,07 --> 01:42:11,71 this is is abundant real estate I mean it's in it's cheap for industrial and it's 1264 01:42:11,72 --> 01:42:15,71 underutilized in the lap of you know it needs private investment and we've got 1265 01:42:15,72 --> 01:42:20,81 a welcome as Mr Taylor and. You know. 1266 01:42:22,22 --> 01:42:28,12 Unfortunately in the past I haven't seen that that mindset you know we we seem to 1267 01:42:28,13 --> 01:42:34,37 be. Fighting against each other more than working together to get the him. Smith 1268 01:42:34,38 --> 01:42:35,24 There will be there clean 1269 01:42:35,25 --> 01:42:41,52 a purpose. You know I mean currently you know the redwood turtle 1270 01:42:42,35 --> 01:42:45,53 it's not doing anything to you know create a better you know by 1271 01:42:45,54 --> 01:42:48,56 a little condition of our day it's only an end of the day. 1272 01:42:52,00 --> 01:42:57,07 Unfortunately you know I am going to say you know the public sector does takes 1273 01:42:57,08 --> 01:43:01,80 twice as long and spends three times as much to get it done so if we can create an 1274 01:43:01,81 --> 01:43:05,65 environment where you want to stimulate private investment and get encourage us to 1275 01:43:05,66 --> 01:43:11,08 come here we well in that they will have had several users they want to do it. 1276 01:43:13,55 --> 01:43:18,23 But we are also looking at you know they are the disadvantage which is obviously 1277 01:43:18,79 --> 01:43:24,03 the permanent structure us California is the difficult difficult environment 1278 01:43:24,04 --> 01:43:28,50 structure in create jobs and that's why we're seeing some of the economic 1279 01:43:28,51 --> 01:43:33,70 conditions we're in right now. It's all true only when I think. 1280 01:43:36,26 --> 01:43:42,86 I've been down field landing since September of eighty six seen the. You know 1281 01:43:42,87 --> 01:43:49,11 couple three cycles gone through here. When I started down there we had export 1282 01:43:49,12 --> 01:43:55,34 industry which was thriving you're exploring log to Japan Korea China. 1283 01:43:58,45 --> 01:44:04,50 It was really you know the boom. And unfortunately like everything else every 1284 01:44:04,51 --> 01:44:06,93 thought every cycle has a tie and flows we had 1285 01:44:06,94 --> 01:44:13,81 a. Have these bar outlets in the early ninety's and that literally overnight took 1286 01:44:13,98 --> 01:44:19,20 the export industry out of Humboldt County and he took it out of California please 1287 01:44:20,17 --> 01:44:27,06 we are our our lot supply was the first private Timberland it was not 1288 01:44:27,07 --> 01:44:33,63 from the four service and the Japanese very quickly went South America and moved in 1289 01:44:33,64 --> 01:44:39,18 down there and they're very happy down there right now recently in as far as the 1290 01:44:39,19 --> 01:44:44,96 spring we've had interest. In our local species are both the dogs for Redwood 1291 01:44:45,55 --> 01:44:52,12 Express. Unfortunately though world economic situation kind of dampened their 1292 01:44:52,13 --> 01:44:57,44 spirits and back off right now but I think that's one thing that we really have 1293 01:44:57,45 --> 01:45:02,18 here is our natural resources our Kember our Kember obviously is the obvious one 1294 01:45:02,80 --> 01:45:09,53 we've had. Several different exports cycles since I moved it moved in field landing 1295 01:45:09,54 --> 01:45:16,42 in eighty six and we were you know we we had like the first year I 1296 01:45:16,43 --> 01:45:22,10 was down there I think we held from thirty seven million feet of logs out down the 1297 01:45:22,11 --> 01:45:25,91 yard itself handled over fifty million who we were you we were used in the yard of 1298 01:45:25,92 --> 01:45:29,71 the sorting station it was sort of logs Some went out for some went to 1299 01:45:29,72 --> 01:45:36,61 a local mill. And and I think that's want one avenue that has been very quiet for 1300 01:45:36,62 --> 01:45:40,42 a number of years but I do see interest coming back now and it's kind of surprising 1301 01:45:41,03 --> 01:45:43,82 to see it but I'm glad to see it because it could put 1302 01:45:43,83 --> 01:45:49,26 a lot of people back to work that I know of it the first time when I first took the 1303 01:45:49,27 --> 01:45:54,55 art over down there the art empty in the first year we brought it back for. Well 1304 01:45:54,56 --> 01:45:57,83 into the you know fifteen million feet the handling in the yard thirty million over 1305 01:45:57,84 --> 01:46:03,85 the dog and it was you know very evident that there's an interest in even though 1306 01:46:03,86 --> 01:46:10,30 they all did take one of our sales in the early ninety's. Their injuries interest 1307 01:46:10,31 --> 01:46:14,71 now in the late ninety's we came back and all of 1308 01:46:14,72 --> 01:46:20,16 a sudden we were importing laws which were very ironic and stuff we were importing 1309 01:46:20,17 --> 01:46:21,77 logs from New Zealand who's 1310 01:46:21,78 --> 01:46:25,72 a Ponderosa pine the New Zealand they refer to it by as Radiohead 1311 01:46:25,73 --> 01:46:31,04 a Riyadh upon. That was doing very well for a while and then we had 1312 01:46:31,05 --> 01:46:37,23 a issue it brought up by. Epic that these logs were 1313 01:46:37,24 --> 01:46:41,74 contaminated with percentage and and say at least that took the wind out of 1314 01:46:41,75 --> 01:46:48,33 everything real quickly again after. About forty days we proved that it was all 1315 01:46:48,86 --> 01:46:54,25 scare tactics unfortunately when you yell fire so 1316 01:46:54,26 --> 01:47:00,08 a lot of times people nowadays run and Larry wiped out that whole project and 1317 01:47:00,14 --> 01:47:04,60 probably one of the reasons that we lost four sawmill here in the county because 1318 01:47:04,61 --> 01:47:09,91 that was one of their big big items that they're working I was creating another you 1319 01:47:09,92 --> 01:47:10,80 know Mark avoid 1320 01:47:10,81 --> 01:47:17,50 a special find. So but. Our business has over the years 1321 01:47:17,51 --> 01:47:21,25 we've handled you know three different things going on almost going humorous when I 1322 01:47:21,26 --> 01:47:25,11 look back at it we we tried cruise ships for 1323 01:47:25,12 --> 01:47:29,34 a while and see there's interest in crew ships again I learned one thing about 1324 01:47:29,41 --> 01:47:33,62 cruise ships and I spent two years down in Florida trying to bring the cruise ships 1325 01:47:33,63 --> 01:47:39,63 in here. First thing is that cruise ships don't want to pay to come here Don Walker 1326 01:47:39,64 --> 01:47:46,52 dock owner you want to be paid for your services. And and first and we found 1327 01:47:46,53 --> 01:47:48,56 out as well what you do as 1328 01:47:48,57 --> 01:47:54,05 a doctor and you got charge everybody else coming through the gate to use you you 1329 01:47:54,06 --> 01:47:54,85 know it's got 1330 01:47:54,86 --> 01:48:01,31 a. Bus Cummins could take people to the other giants charge them well to make 1331 01:48:01,32 --> 01:48:05,94 a long story short that became very new didn't become feasible because first of all 1332 01:48:05,95 --> 01:48:10,87 ships didn't become waiting if we had I think we have what three ships. And so I 1333 01:48:10,88 --> 01:48:13,98 mean that was you know was and then the other thing was 1334 01:48:14,84 --> 01:48:19,04 a sin called an insurance company I remember when I called my insurance company 1335 01:48:19,05 --> 01:48:25,20 level know that we were looking at cruise ships. Literally two days later I had an 1336 01:48:25,21 --> 01:48:31,27 insurance agent who was in Sacramento and an underwriter from New York or 1337 01:48:31,50 --> 01:48:34,58 Philadelphia in my office and all of 1338 01:48:34,59 --> 01:48:38,70 a sudden I realized I didn't want to push it because first of all they wanted 1339 01:48:38,71 --> 01:48:44,88 a piece they wanted everything solid concrete they wanted all kinds Inc has the 1340 01:48:44,89 --> 01:48:51,81 Harvey and now it's no use even because in here again I'm not getting paid for it 1341 01:48:51,85 --> 01:48:56,59 I have to provide it but yeah go away get money by standing for me with 1342 01:48:56,60 --> 01:48:57,47 a chip with 1343 01:48:57,48 --> 01:49:01,91 a change box at the front gate charge or body in and out of anywhere we tried that 1344 01:49:01,91 --> 01:49:07,07 . We've handled several little projects we had one where we had 1345 01:49:07,08 --> 01:49:13,95 a computerized potato chip. That went to Argentina and 1346 01:49:14,28 --> 01:49:20,19 we had the cargo with brought in from. We had some some from Canada some from some 1347 01:49:20,20 --> 01:49:24,91 stuff from California we had stuff from. Back in the northeast that was trucked out 1348 01:49:24,92 --> 01:49:29,96 here and everything and we cumulate it for three months and then loaded on 1349 01:49:29,97 --> 01:49:32,20 a ship in a couple days very interesting we had 1350 01:49:32,21 --> 01:49:36,72 a second ship booked back into the same thing second year but unfortunately no 1351 01:49:36,73 --> 01:49:40,89 ships in our area that would could handle it so when it came when I got to Houston 1352 01:49:40,93 --> 01:49:45,45 that someplace but anyway. We tried X. 1353 01:49:45,46 --> 01:49:51,22 We we did chips for two years ship ships up the coast and actually look at one 1354 01:49:51,32 --> 01:49:57,20 shipping load overseas here again the market softened and so that's gone away now 1355 01:49:57,79 --> 01:50:03,97 but as far as the future of humble Bay And as far as business is far as I'm 1356 01:50:03,98 --> 01:50:08,05 concerned it's here we've got more opportunities you can pick stick at there are 1357 01:50:08,06 --> 01:50:09,95 a lot of roadblocks but there are 1358 01:50:09,96 --> 01:50:14,61 a lot of opportunities I mean even even with this climate we have right now which 1359 01:50:14,62 --> 01:50:19,70 is you know centrally you know almost dead but the point is as we mentioned you 1360 01:50:19,71 --> 01:50:23,29 know you need to take a breather every so often. And so we're getting 1361 01:50:23,30 --> 01:50:25,30 a chance to take a breather take 1362 01:50:25,31 --> 01:50:29,72 a look at things through different star glasses I see like I said 1363 01:50:29,98 --> 01:50:33,11 a lot of opportunities I mean I'm not going to go into detail on the go beyond 1364 01:50:33,12 --> 01:50:39,27 survive for you to death how the thing we look at but the thing is is that you know 1365 01:50:39,85 --> 01:50:40,85 we had a good we had 1366 01:50:40,86 --> 01:50:46,94 a real good run of that with the importing logs of the ten years of work. And 1367 01:50:47,62 --> 01:50:52,20 unfortunately you know with the being tied to more or less the lumber timber 1368 01:50:52,21 --> 01:50:53,58 industry of it we've taken 1369 01:50:53,59 --> 01:50:58,27 a downturn in that but at the same time I looked at Alcoa culture we looked into 1370 01:50:58,28 --> 01:51:03,71 a putting in an abalone farm down there and got 1371 01:51:04,14 --> 01:51:09,33 a lot of work on it and unfortunately to do the downturn in economics in general it 1372 01:51:09,34 --> 01:51:13,16 stop. If we were really one we're really getting down to the nitty gritty and 1373 01:51:13,17 --> 01:51:18,36 turned to look at putting some funding together do that but I'm going to say 1374 01:51:18,37 --> 01:51:23,62 wouldn't happen here in the future of one of the one of the and I use the word 1375 01:51:23,63 --> 01:51:29,23 roadblock because in that we have if you have 1376 01:51:29,24 --> 01:51:31,17 a problem if you have something where you have to build 1377 01:51:31,18 --> 01:51:33,58 a repair or something in our case we have 1378 01:51:33,59 --> 01:51:39,22 a dike that failed was down there so I merely came to the harbor district and I 1379 01:51:39,23 --> 01:51:43,09 said OK here's my situation you fix stuff OK we'll do you know here's what you got 1380 01:51:43,10 --> 01:51:48,94 to do the first thing you've got the harbor district asked to step in they are not 1381 01:51:48,95 --> 01:51:49,17 even 1382 01:51:49,18 --> 01:51:54,25 a bump in the road there's anything there they give they give you some support where 1383 01:51:54,26 --> 01:51:59,06 they go you have the California coast commission that you're going to deal with and 1384 01:51:59,07 --> 01:52:03,25 I'll tell you something I have never ever had to deal with somebody some 1385 01:52:03,31 --> 01:52:08,41 organization that has one gold stocks they don't care what they have to do but they 1386 01:52:08,42 --> 01:52:13,02 will say it will try to which side. The Army Corps there aren't too much of 1387 01:52:13,03 --> 01:52:16,35 a problem I mean they have they have some dinner interesting perspectives on things 1388 01:52:16,36 --> 01:52:18,19 but usually it's 1389 01:52:18,20 --> 01:52:24,96 a matter of giving in the knowledge or more information. Cal point partition game. 1390 01:52:26,62 --> 01:52:32,84 They can be helpful but here again if you if you don't approach in the right way 1391 01:52:32,85 --> 01:52:35,39 you'll you'll have a robot there and then U.S. 1392 01:52:35,40 --> 01:52:39,50 Fish and Wildlife Service which I'll be off with I was shocked at their whole 1393 01:52:39,51 --> 01:52:44,12 attitude they just I mean you know they they they were very negative by that but 1394 01:52:44,73 --> 01:52:49,16 quite what I found very interesting and true Harbor commissioners about this is 1395 01:52:49,17 --> 01:52:55,38 these groups were very carefully behind the scenes and I literally can show you the 1396 01:52:55,54 --> 01:52:57,40 dates where one would have 1397 01:52:57,41 --> 01:53:03,36 a permit the permit would expire let's say for example on the fifth of March. Now 1398 01:53:03,80 --> 01:53:07,93 you needed your other permits in place before that permit expired or they were any 1399 01:53:07,94 --> 01:53:10,16 good and I'll be a son of a gun if you couldn't get 1400 01:53:10,17 --> 01:53:15,67 a permit till the seventh of March for the next one we had to look we have that 1401 01:53:15,68 --> 01:53:17,08 several times and then we went to 1402 01:53:17,09 --> 01:53:21,15 a meeting one time right over cross way here and David actually had 1403 01:53:21,20 --> 01:53:24,15 a referee there. We went into 1404 01:53:24,16 --> 01:53:29,86 a meeting and the foreman Fish and Game decided that the property that was flooded 1405 01:53:29,87 --> 01:53:36,82 to the dock Philly was now prime habitat. Or salt marsh so that I was going to have 1406 01:53:36,83 --> 01:53:43,54 to come up with mitigation land to put my dock back. And due to their. 1407 01:53:45,01 --> 01:53:50,46 Good timing we spent six weeks afterwards trying to come up 1408 01:53:50,47 --> 01:53:55,25 a verse Aleutian and there was no resolution but the minute my Army Corps permit 1409 01:53:55,26 --> 01:53:56,31 expired I got 1410 01:53:56,32 --> 01:54:00,72 a nice letter saying Mr Murphy you were right there is no mitigation necessary for 1411 01:54:00,73 --> 01:54:01,94 this but once 1412 01:54:01,95 --> 01:54:08,66 a permits expired you were back in trouble so anyway. That you know those are the 1413 01:54:08,67 --> 01:54:14,42 interesting things that you have when it comes to the redwood dock I am against it 1414 01:54:15,05 --> 01:54:20,37 and I will tell you it is just plain as night as in those in my face here this 1415 01:54:20,38 --> 01:54:27,08 three of us here that often are docs are not buried with full cargo we right now 1416 01:54:27,13 --> 01:54:33,49 are all sitting empty but even when the economy is great we are not overbooked. And 1417 01:54:33,50 --> 01:54:37,35 the thing is when the harbor district talked about you know what we're going to 1418 01:54:37,62 --> 01:54:37,85 make 1419 01:54:37,86 --> 01:54:42,25 a dock for cruise ships for whatever they're going to containers where I can help 1420 01:54:42,26 --> 01:54:48,90 contain I've handled. You know want to ships I would have to say I'm not interested 1421 01:54:48,91 --> 01:54:55,58 in your culture. But I'll be honest with you. The harbor district 1422 01:54:55,88 --> 01:54:59,00 should not be competing with private industry and when they own 1423 01:54:59,01 --> 01:55:03,98 a dock and are talking about operating at complete competition there is no way on 1424 01:55:03,99 --> 01:55:09,06 the faces or in this community that the private Octavio can to keep the Harvester 1425 01:55:09,07 --> 01:55:14,75 with public school. Which is absolutely why it would be like somebody going and 1426 01:55:14,76 --> 01:55:19,30 building a highway next to one on one and making it in making 1427 01:55:19,31 --> 01:55:20,69 a private highway how to make 1428 01:55:20,70 --> 01:55:27,44 a toll road the people. You'd be dead meat. So that 1429 01:55:27,45 --> 01:55:27,83 is 1430 01:55:28,50 --> 01:55:35,88 a troll leave it really thank you. Thank 1431 01:55:35,90 --> 01:55:37,90 you hum. Let me tell you 1432 01:55:37,91 --> 01:55:41,41 a little bit about Pacific affiliates and how we were formed to begin with how I 1433 01:55:41,42 --> 01:55:47,40 came about this stock that I have down there now. In one nine hundred seventy nine 1434 01:55:47,58 --> 01:55:51,24 we formed Pacific and Philip were basically consulting Civil Engineers and we did 1435 01:55:51,25 --> 01:55:57,56 a lot of marine work on the bay that was actually our port. And. Short We did 1436 01:55:57,57 --> 01:56:01,02 a lot higher graphics surveys and we were knowledgeable of them things like that so 1437 01:56:01,02 --> 01:56:07,13 . About four or eight years after we started four guys were around on the bay who 1438 01:56:07,14 --> 01:56:11,82 were members of the co-op will go co-op here and the oil companies contacted us and 1439 01:56:11,83 --> 01:56:15,14 said Would you be willing to be our oil spill response contractor on 1440 01:56:15,15 --> 01:56:19,34 a more base Mr knowledgeable and we will sell all of our equipment and everything 1441 01:56:19,35 --> 01:56:22,97 to you you become a contractor we agreed to that so if we were having 1442 01:56:22,98 --> 01:56:25,27 a boat at that time built in Seattle 1443 01:56:25,61 --> 01:56:29,24 a class one hundred of every survey boat we modified a little and all of 1444 01:56:29,25 --> 01:56:35,59 a sudden we were well spill response contacted. Shortly thereafter the Exxon 1445 01:56:35,60 --> 01:56:38,90 Valdez happened and as you all know there was 1446 01:56:38,91 --> 01:56:44,44 a big influence on oil spill response we realized we had to move our facility to 1447 01:56:44,45 --> 01:56:51,41 Humboldt bag and. With that we bought all of whose Tempus of his 1448 01:56:51,42 --> 01:56:55,29 holdings on the west side of the bay which included dock 1449 01:56:55,30 --> 01:57:01,23 a in the plan property. From there we've we developed an oil spill response 1450 01:57:01,24 --> 01:57:07,04 facility as well as acquired additional land there. In one thousand and that 1451 01:57:07,05 --> 01:57:13,58 happened in Amman nine hundred eighty eight. Shortly thereafter that the 1452 01:57:13,59 --> 01:57:17,29 consensus of the public around him what they had was that if we had 1453 01:57:17,30 --> 01:57:19,43 a dock here if you build 1454 01:57:19,44 --> 01:57:24,78 a dock they will come and I think you can all remember that saying that if you 1455 01:57:24,79 --> 01:57:29,77 build it they will come. So we have started to undertake building 1456 01:57:29,92 --> 01:57:36,20 a class one dog on will back off concrete concrete supported and we rebuilt dock 1457 01:57:36,21 --> 01:57:40,76 a it's. Just short of four hundred feet deep draft right in the front of it as 1458 01:57:40,77 --> 01:57:45,34 a concrete access to it and it will take a heck of a load as 1459 01:57:45,35 --> 01:57:49,03 a matter of fact when they rebuilt the bridges here they had 1460 01:57:49,04 --> 01:57:54,39 a manic walk forty two hundred crane that they wanted to walk off of the barge onto 1461 01:57:54,40 --> 01:58:00,99 shore without taking it apart that crane weighed three hundred tons. They walked 1462 01:58:01,00 --> 01:58:07,05 from the barge across star dock and to shore OK that just attests to the strength 1463 01:58:07,06 --> 01:58:11,84 of all of the dock. So anyway we spent five to ten million dollars on 1464 01:58:11,85 --> 01:58:18,80 a facility and that was back in the mid ninety's OK we built our up 1465 01:58:18,81 --> 01:58:25,00 land paved our yard. Built a of a large graving area there was 1466 01:58:25,01 --> 01:58:31,60 a launch launch facility. We built it and 1467 01:58:32,43 --> 01:58:39,07 we're still waiting for me to come. In the last ten 1468 01:58:39,08 --> 01:58:43,73 years. I doubt that we've had two or three ships 1469 01:58:43,74 --> 01:58:50,17 a year our facility. We get the Army Corps dreads we get some research vessels we 1470 01:58:50,18 --> 01:58:54,77 have unloaded some chips we vomited some long but I'm really reluctant to get into 1471 01:58:54,78 --> 01:59:00,46 those sort of thing because you know would he do it. On the worst Broxton doing 1472 01:59:00,47 --> 01:59:04,70 chips of other people doing those things I'm just kind of reluctant to compete with 1473 01:59:05,12 --> 01:59:10,05 with those guys for those sort of products. It's not as though we haven't looked 1474 01:59:11,00 --> 01:59:17,86 we've been looking for users ever since we both are. It's been 1475 01:59:18,59 --> 01:59:22,91 basically a loser. You spend that much money you want to get 1476 01:59:22,92 --> 01:59:28,41 a return on your investment. But it hasn't happened yet so we're continuing to look 1477 01:59:29,35 --> 01:59:34,73 at one point actually it would be less quest for. 1478 01:59:35,75 --> 01:59:42,13 Myself city Reka formed a group called from will see tree and we've started 1479 01:59:42,14 --> 01:59:47,75 a marketing group that what we try to market humble day in and get. 1480 01:59:48,95 --> 01:59:54,99 Cargo in and that went on for about five years so I can appreciate your tacit you 1481 01:59:55,00 --> 02:00:01,61 have this fourth market it was difficult. You know the trade is is not 1482 02:00:01,62 --> 02:00:07,61 a big window. Water dependent or coast of the planet industrial is 1483 02:00:07,62 --> 02:00:14,42 a very small window. OK of cargo in users. That 1484 02:00:14,43 --> 02:00:20,89 window is very very very small when you consider or political 1485 02:00:20,90 --> 02:00:27,48 makeup or you know or constituency it's very small as to what we can do what's 1486 02:00:27,49 --> 02:00:34,41 acceptable to this area and do so. With him with him from friend Frank 1487 02:00:34,42 --> 02:00:41,22 Ergo it's not an easy task. We're. We're continuing to look will 1488 02:00:41,26 --> 02:00:46,00 always continue to look we're paying rent on that that land down of that docks on 1489 02:00:46,32 --> 02:00:53,02 we got to check on investment there. We'd like to use it. Even if we didn't use it 1490 02:00:53,03 --> 02:00:57,40 you gotta understand docs are losers. It every one of these guys have got 1491 02:00:57,41 --> 02:01:00,95 a loser on or. Because you use 1492 02:01:00,96 --> 02:01:06,96 a doctor less than five percent of the time OK if even if you had one hundred acres 1493 02:01:07,44 --> 02:01:08,20 you know or 1494 02:01:08,24 --> 02:01:14,90 a thousand you would get your doc utility is very minimal OK to support all and you 1495 02:01:14,91 --> 02:01:20,35 need for a plan and it's a heck of an expense people don't realize how much 1496 02:01:20,36 --> 02:01:24,07 a doc cost to get a five million dollar crane and somebody wanted to use a for 1497 02:01:24,08 --> 02:01:29,01 a couple days what do you think they'd charge for. You know as much as what he has 1498 02:01:29,02 --> 02:01:33,10 in his dock in the crucial points accountable for just let it use the use of free 1499 02:01:33,63 --> 02:01:33,96 oil as 1500 02:01:33,97 --> 02:01:39,18 a five million dollar crane believe me they wouldn't use the free and those docs 1501 02:01:39,19 --> 02:01:41,31 are expensive there are plenty to upkeep there 1502 02:01:41,32 --> 02:01:46,25 a dynamic process but you can always cut the ocean beat them on their end of the 1503 02:01:46,39 --> 02:01:49,41 area were. They don't have 1504 02:01:49,42 --> 02:01:54,24 a long life so they're just not to you're not going to make money on your dog you 1505 02:01:54,25 --> 02:01:59,27 make money on your own. Here doc is just there your doc is just 1506 02:01:59,28 --> 02:02:01,78 a method of getting from the ocean here up with 1507 02:02:02,06 --> 02:02:07,79 a small but it's an expensive method but. As 1508 02:02:07,80 --> 02:02:13,47 a recent We've. Stephen I'm going to lead in the steam heat with H.T.M.L. 1509 02:02:13,97 --> 02:02:14,88 We've been working with 1510 02:02:14,89 --> 02:02:21,20 a broker for the shore see shipping trying to do something there. That 1511 02:02:21,63 --> 02:02:28,59 we we started it when times were good and now we're. We're moving on but funds 1512 02:02:28,60 --> 02:02:32,07 are not good right to own them so shipping is a is 1513 02:02:32,08 --> 02:02:38,01 a difficult thing to to move into but we're continuing to try and develop it we 1514 02:02:38,02 --> 02:02:42,78 have the infrastructure there we have the dark that will occur the Haleigh 1515 02:02:42,79 --> 02:02:49,62 containers it's got the draft it's got the yard we have all everything we need we 1516 02:02:49,63 --> 02:02:55,64 just need to put equipment on there to to do it so Stephen I want you to go. From 1517 02:02:55,65 --> 02:03:01,32 there. Michael. Kay. 1518 02:03:04,93 --> 02:03:10,39 If I talk like this can people hear me pretty well all right great. I'll just kind 1519 02:03:10,40 --> 02:03:14,39 of jump right in for the Mountain time that we have left and I for shits 1520 02:03:14,40 --> 02:03:17,01 opportunity. And I wrote 1521 02:03:17,02 --> 02:03:22,24 a list of some key points to address the people that either asked in the past or or 1522 02:03:22,25 --> 02:03:26,90 that sort of raise an eyebrow for me. But start off with this first slide I've got 1523 02:03:26,91 --> 02:03:30,88 about five slides I'll try to run through them really quickly and then get into 1524 02:03:30,89 --> 02:03:36,19 a bit more verbal detail and hopefully some feedback from you folks as well. You 1525 02:03:36,20 --> 02:03:40,78 know a lot of talk has been we've heard a lot talk to me about humble Bay as 1526 02:03:40,79 --> 02:03:47,67 a. Port and it certainly is however. You 1527 02:03:47,68 --> 02:03:52,49 know one of the my primary focus is on sources shipping the Marine Highway and this 1528 02:03:52,50 --> 02:03:59,02 port in that sort of. More regional focus and then I can talk about some financial 1529 02:03:59,03 --> 02:04:05,07 dovetails also with international but for the primary focus I designed this slide 1530 02:04:05,08 --> 02:04:11,38 to kind of relate our our vision of what we feel. This day isn't 1531 02:04:11,39 --> 02:04:14,47 a herd's to this community so it's 1532 02:04:14,48 --> 02:04:19,06 a mechanism for local shippers there's no doubt in local shippers our local 1533 02:04:19,07 --> 02:04:23,18 businesses are exporters and our importers and those folks who make create and 1534 02:04:23,19 --> 02:04:24,56 there's we have a lot of them around here 1535 02:04:24,57 --> 02:04:30,88 a lot and it's business and and industrial and wood products business as well. But 1536 02:04:30,89 --> 02:04:32,73 basically you know you have three components you have 1537 02:04:32,74 --> 02:04:37,00 a job to do you have tools and you have your tool belt in which to do the wind so 1538 02:04:37,01 --> 02:04:38,60 we see sort of the job as 1539 02:04:38,61 --> 02:04:43,46 a regional port to enable access to international markets which we've talked 1540 02:04:43,47 --> 02:04:49,21 a lot about this evening and enable access to domestic markets. See the states of 1541 02:04:49,22 --> 02:04:53,53 red and the sort of the tools that has been mentioned already your transportation 1542 02:04:53,91 --> 02:04:58,01 mechanism whether it's barging or shifting the other tools in your belt would be 1543 02:04:58,02 --> 02:05:03,75 the pilot stevedoring services customs. Services these are the types of things 1544 02:05:03,76 --> 02:05:08,52 needed to be able to do that kind of work in the toolbelt basically what holds all 1545 02:05:08,53 --> 02:05:12,60 this together is your infrastructure that you have in the maintenance of that 1546 02:05:12,61 --> 02:05:16,48 infrastructure that includes the talks and equipment that you have or don't have in 1547 02:05:16,49 --> 02:05:21,63 dredging in order to maintain these types of services and then of Port Authority 1548 02:05:21,67 --> 02:05:22,89 sort of like what we have 1549 02:05:23,35 --> 02:05:28,54 a harbor district offer some ports and the and hopefully some economic development 1550 02:05:28,74 --> 02:05:32,77 like we're doing this evening in some regional networking like Wilson has been 1551 02:05:32,78 --> 02:05:39,57 doing. So I guess if I go. OK So we're hopeful 1552 02:05:39,58 --> 02:05:41,64 maritime logistics and we're developing 1553 02:05:41,65 --> 02:05:45,78 a West Coast innermost source the shipping container on board consolidated freight 1554 02:05:45,79 --> 02:05:46,41 service that's 1555 02:05:46,42 --> 02:05:50,42 a mouthful but it's really important is the consolidated shipper part which 1556 02:05:50,43 --> 02:05:54,59 basically means well when you think about typical barging that we've historically 1557 02:05:54,60 --> 02:05:59,39 done here in the bay you think about one commodity on the barge for one chip or 1558 02:05:59,70 --> 02:06:06,40 logs with chips on the or. Even fuel kind of sort of fall under that 1559 02:06:07,04 --> 02:06:11,73 consolidated shippers basically taken out by. It's capacity in dividing it up tween 1560 02:06:11,74 --> 02:06:15,17 a whole bunch of different ship or whether you're shipping bags oil I thought forms 1561 02:06:15,70 --> 02:06:22,00 or you were shipping you know wood products or you're shipping. You know domestic 1562 02:06:22,01 --> 02:06:26,16 wholesale goods or even Culver coming in here to lay down on the roads or if you're 1563 02:06:26,16 --> 02:06:32,24 . Like manufacturing all kinds of different products that we create here could be 1564 02:06:32,25 --> 02:06:37,45 a political two consolidated should pursue an area of three using containers flat 1565 02:06:37,46 --> 02:06:41,98 rocks and open tops I'll talk little bit more about what those are but we see it as 1566 02:06:41,99 --> 02:06:45,89 a sustainable shipping solution via water born free transportation cheaper and 1567 02:06:45,90 --> 02:06:51,74 greener freight and we call it cheaper and greener because. If we're successful in 1568 02:06:51,75 --> 02:06:54,75 implementing this move confident that at the time that we do that it will be 1569 02:06:54,76 --> 02:07:00,33 cheaper and that has to do with fuel prices and our whole bit more about that and 1570 02:07:00,34 --> 02:07:05,02 greener because. Our service as we've designed it consists of two independent 1571 02:07:05,03 --> 02:07:08,88 barging programs that say three point four million gallons of fuel consumed 1572 02:07:08,89 --> 02:07:13,37 a year if you compare that to a long haul truck here in fact I do have 1573 02:07:13,38 --> 02:07:18,61 a list of some literature that I could pass around I didn't bring enough so I 1574 02:07:18,62 --> 02:07:23,02 didn't realize there be so many people. Which I'm happy but this is 1575 02:07:23,03 --> 02:07:24,94 a snapshot of what it looks like so there you have 1576 02:07:25,42 --> 02:07:28,62 a barge for us here in the humble Bay you know you have 1577 02:07:28,63 --> 02:07:33,53 a typical container barge they want to be would implement would it look 1578 02:07:33,54 --> 02:07:37,74 a little bit different than that but that's for the most part where looks like the 1579 02:07:37,75 --> 02:07:39,67 larger crane as Wilson It showed earlier 1580 02:07:40,07 --> 02:07:45,88 a container handler or two on the bottom left and this is really familiar with what 1581 02:07:45,89 --> 02:07:51,59 we wouldn't implement right there at Dave's facility at the Washington Street 1582 02:07:51,60 --> 02:07:55,80 they're not really big He's got about five acres that we have 1583 02:07:55,81 --> 02:08:02,33 a. We have a plan a scenario 1584 02:08:02,34 --> 02:08:07,91 a can think of the one I'm looking for. For about six hundred containers that we 1585 02:08:07,92 --> 02:08:14,48 can weave there in the left and you're you're. His talk. You know we talk about 1586 02:08:14,49 --> 02:08:21,38 infrastructure. His talk is barely big enough but certainly strong enough and that 1587 02:08:21,39 --> 02:08:26,35 is about the only dock on the bay that we have right now that we work with this is 1588 02:08:26,47 --> 02:08:28,48 the scenario as we've designed it using 1589 02:08:28,49 --> 02:08:35,28 a mobile Harbor crane to our to the knowledge that we have right now. Because the 1590 02:08:35,32 --> 02:08:41,36 crane weighs about three to four hundred. Times what some of the way he's had on 1591 02:08:41,37 --> 02:08:48,25 his time in the past. So you know what it was why why it was short shipping 1592 02:08:48,26 --> 02:08:52,13 why why is it even you know what it was all about well basically it's 1593 02:08:52,14 --> 02:08:53,71 a way to address problems it's 1594 02:08:53,72 --> 02:08:58,02 a transportation mechanism this has petitioned industry to the mess to 1595 02:08:58,03 --> 02:09:04,76 transportation industry back up our primary. Focuses transitioning domestic 1596 02:09:05,01 --> 02:09:11,28 I five and Highway one hundred one freight from highway to waterborne market more 1597 02:09:11,29 --> 02:09:17,81 waterborne mode so we're primarily concerned with domestic Transportation trucks 1598 02:09:17,82 --> 02:09:22,79 and trains moving in the North-South direction along the west coast between the 1599 02:09:22,80 --> 02:09:27,67 three states and eventually potentially Canada and Mexico. So when you look at west 1600 02:09:27,68 --> 02:09:32,24 coast transportation issues. The first thing comes to mind given that recent fuel 1601 02:09:32,25 --> 02:09:34,98 spike last summer with fuel prices there's been 1602 02:09:34,99 --> 02:09:37,49 a lot of talk about capacity constraints I.E. 1603 02:09:37,50 --> 02:09:42,80 Rail and highway. Air quality policies implemented by car driving the cost of 1604 02:09:42,81 --> 02:09:47,91 trucking. Everybody is concerned with oil consumption and dependence on foreign oil 1605 02:09:48,72 --> 02:09:53,57 freeway congestion and last time my little trucks and Driver long haul driver 1606 02:09:53,58 --> 02:09:55,01 shortages is 1607 02:09:55,02 --> 02:09:59,33 a big issue and actually right now these those types of issues are becoming even 1608 02:09:59,34 --> 02:10:00,09 more of 1609 02:10:00,10 --> 02:10:04,98 a concern for transportation providers and shippers because smaller trucking companies 1610 02:10:04,99 --> 02:10:08,90 are falling by the wayside in this turn downturn and folks are just leaving the 1611 02:10:08,91 --> 02:10:13,66 trucking industry looking for well looking for any kind of work but the trucking 1612 02:10:13,92 --> 02:10:18,77 industry is taking it on the chin so what shore sea shipping does is provide some 1613 02:10:18,78 --> 02:10:21,48 measure of relief to those problems 1614 02:10:22,16 --> 02:10:27,29 a cost reduction route diversification alternative mode waterborne versus trucking 1615 02:10:27,30 --> 02:10:32,57 or rail fuel efficiency environmental responsibility because business is economic 1616 02:10:32,58 --> 02:10:37,63 downturn is also timed with businesses still wanting to when they can. You know do 1617 02:10:37,64 --> 02:10:39,63 things more environmentally responsible and 1618 02:10:39,64 --> 02:10:45,56 a greater recognition toward sustainability. And marketability you know first some 1619 02:10:45,57 --> 02:10:49,40 companies with environmental responsibility comes with competitive advantage to 1620 02:10:49,49 --> 02:10:55,08 more people so. Or do we have the H.M.O. 1621 02:10:55,09 --> 02:10:58,80 Complete coastal program there's another one the major market program I won't talk 1622 02:10:58,81 --> 02:11:03,18 about that at all it just touches the major markets the complete coastal program 1623 02:11:03,19 --> 02:11:08,13 touches the major markets and. Of course because we want to have her home port here 1624 02:11:08,53 --> 02:11:13,46 and Q.'s Bay should they want to take part in it when we get there. So what we're 1625 02:11:13,47 --> 02:11:14,38 talking about is 1626 02:11:14,39 --> 02:11:19,85 a bust model where the barge goes up and down the coast. And only transfers 1627 02:11:19,86 --> 02:11:25,57 a fraction of the cargo on it at each port hole so there's been 1628 02:11:25,58 --> 02:11:30,54 a lot of talk about shorts the shipping and its viability and the debt you know the 1629 02:11:30,55 --> 02:11:32,92 success and in the viability of 1630 02:11:32,93 --> 02:11:37,58 a really is in the details at this stage in the game is really house is in the 1631 02:11:37,59 --> 02:11:39,23 detail and I'll talk 1632 02:11:39,24 --> 02:11:43,68 a little bit about that but what we're talking about is if you count all these up 1633 02:11:44,03 --> 02:11:44,70 if you're hope 1634 02:11:44,71 --> 02:11:49,97 a ship and you want to ship to the Bay Area or Southern California. Or up and down 1635 02:11:49,98 --> 02:11:56,97 the ten major west coast freight lanes five strategically chosen ports. You 1636 02:11:56,98 --> 02:12:00,45 know temporary lines is quite a bit I can compass as a if you're casting 1637 02:12:00,46 --> 02:12:03,88 a wide net with folks that move freight up and down the West Coast. 1638 02:12:08,81 --> 02:12:13,40 Are the two programs as I mentioned together he package them almost all of the 1639 02:12:13,41 --> 02:12:18,15 transition about ninety seven thousand long haul truck moves off the highways say 1640 02:12:18,16 --> 02:12:22,25 three point eight million gallons of diesel fuel this is you know recount and 1641 02:12:22,26 --> 02:12:26,43 that's the model that we created which equates to about thirty seven thousand 1642 02:12:26,44 --> 02:12:27,97 metric tons of C O two emissions 1643 02:12:27,98 --> 02:12:34,31 a year and if you average it out. Saves about forty million jobs for hols per year 1644 02:12:34,75 --> 02:12:37,08 so. You know that sounds like 1645 02:12:37,09 --> 02:12:42,62 a lot and it is but given you know California and West Coast transportation on 1646 02:12:42,63 --> 02:12:45,65 a whole it's not it's just a drop in the bucket However it's 1647 02:12:45,66 --> 02:12:47,76 a start and we're starting to see 1648 02:12:47,77 --> 02:12:51,83 a lot of interest and so is the Marine Highway program because we're not the only 1649 02:12:51,84 --> 02:12:54,10 ones working on this as the district has talked about. 1650 02:13:00,26 --> 02:13:06,97 OK Real quick snapshot about capacity this is like exit ing volumes for months. And 1651 02:13:06,98 --> 02:13:12,45 then on this handout I should have put this handout on their. Back to back with 1652 02:13:12,46 --> 02:13:17,04 Anyways we have the five ports the total exiting volume so if you are you know the 1653 02:13:17,05 --> 02:13:18,07 number of times that 1654 02:13:18,63 --> 02:13:22,67 a freight could move out of one of these ports and you add it all that is about 1655 02:13:22,68 --> 02:13:23,64 thirty three hundred 1656 02:13:24,04 --> 02:13:29,14 a month and then of course there's an inverse of that where you can receive freight 1657 02:13:29,15 --> 02:13:29,48 into 1658 02:13:29,49 --> 02:13:36,43 a port as well so basically for home the home base now shot is. About twelve 1659 02:13:36,44 --> 02:13:37,55 hundred moves 1660 02:13:37,59 --> 02:13:43,01 a month. And this constantly gets refined and tweak as we develop our model and to 1661 02:13:43,02 --> 02:13:44,75 take it but essentially I have 1662 02:13:44,76 --> 02:13:51,72 a breakdown here of the number of capacity with this one barge program implemented 1663 02:13:51,73 --> 02:13:57,75 in for example if you're you're interested in humble pay to the Bay Area. You get 1664 02:13:57,76 --> 02:14:01,42 one hundred thirty two to two hundred eight opportunities to ship 1665 02:14:01,64 --> 02:14:06,81 a month. If you're interested in Southern California the way this barge is the 1666 02:14:07,60 --> 02:14:08,81 program is designed you get 1667 02:14:08,82 --> 02:14:13,82 a one hundred thirty two opportunities to ship out here to the base so in 1668 02:14:13,83 --> 02:14:18,66 California so the reason why I want to say that speed say those numbers. That's not 1669 02:14:18,67 --> 02:14:24,89 very much so we feel like our volumes each and one of every one of these ports that 1670 02:14:24,90 --> 02:14:26,45 need to be filled in order to create 1671 02:14:26,49 --> 02:14:33,49 a viable business model is not that much given what the amount of freight that 1672 02:14:33,50 --> 02:14:34,20 moves because that's 1673 02:14:34,21 --> 02:14:38,69 a big question it's been discussed and we looked at it ourselves Also could we do 1674 02:14:38,70 --> 02:14:43,85 a barge between humble Bay in the Bay Area No you can't there's not enough freight 1675 02:14:43,86 --> 02:14:48,46 moving in both directions to sustain a barge and viability you cannot fill up 1676 02:14:48,98 --> 02:14:54,93 a barge with enough free here or there to come back here in order to do that but 1677 02:14:54,94 --> 02:14:59,29 what you can do is you can implement a bus model where you don't have to fill up 1678 02:14:59,30 --> 02:15:02,96 a whole barge you just have to fill up a fraction of the barge each time you go to 1679 02:15:02,97 --> 02:15:06,88 a port and all these different port costs and that's what I was talking about the 1680 02:15:06,89 --> 02:15:09,92 devil I mean the success is really in the details. 1681 02:15:14,31 --> 02:15:20,87 I am. Liking it there we go OK this is the single driving point I want to make home 1682 02:15:20,88 --> 02:15:25,92 for this area. In fact right behind everybody there's the same picture on the wall 1683 02:15:26,71 --> 02:15:32,90 the ton miles per gallon fuel efficiency of container. Of different modes of ship 1684 02:15:33,39 --> 02:15:35,91 what that means is you know typically on average you can move 1685 02:15:35,92 --> 02:15:40,94 a ton of freight hundred fifty five miles of one gallon of diesel fuel. Well you 1686 02:15:40,95 --> 02:15:41,71 can see you can move 1687 02:15:41,72 --> 02:15:46,43 a five hundred seventy six England were in transportation that's like Mississippi 1688 02:15:46,44 --> 02:15:52,01 River clear of our program throughout that three hundred and ninety ton miles per 1689 02:15:52,02 --> 02:15:57,54 gallon when folks are not jokingly talking from here about having to ship to where 1690 02:15:57,55 --> 02:16:00,14 you're going to ship something from there comes into 1691 02:16:00,37 --> 02:16:04,74 a major play when you look at transportation costs as as fuel prices started to 1692 02:16:04,75 --> 02:16:06,77 rise so you know we got 1693 02:16:06,78 --> 02:16:11,16 a snapshot last summer of what that time what that would do to this county on 1694 02:16:11,17 --> 02:16:15,23 a sustained. Length of time luckily it was only 1695 02:16:15,24 --> 02:16:21,99 a spike However as do you. Prices rise you know and you're the only way you have to 1696 02:16:22,00 --> 02:16:28,95 ship is by truck you're incurring cost to be able to ship your goods at you only 1697 02:16:29,34 --> 02:16:34,08 had to double the rate as other modes essentially are more than double actually and 1698 02:16:34,57 --> 02:16:40,32 this is hard to read I apologize for that but you have fuel prices across the 1699 02:16:40,33 --> 02:16:46,26 bottom. From one to seven and you have wine haul prices up the left hand side who 1700 02:16:46,27 --> 02:16:49,06 zero to three fifty three dollars to fifty cents 1701 02:16:49,07 --> 02:16:55,53 a mile to move you move your goods you can see that. Trucking escalates at 1702 02:16:55,54 --> 02:17:00,03 a high rate. Over the summer we're around four dollars 1703 02:17:00,39 --> 02:17:04,60 a gallon and fuel is you know I mean the cost to move was around two twenty five to 1704 02:17:04,61 --> 02:17:08,26 thirty was what truckers even around here would look and try to make on their on 1705 02:17:08,27 --> 02:17:14,97 their moves. And then you have. The other modes of rail and ship and barging in 1706 02:17:14,98 --> 02:17:19,05 barging isn't red so you can see out fuel goes from a dollar to 1707 02:17:19,06 --> 02:17:21,38 a gallon from one dollar a gallon to seven dollars 1708 02:17:21,39 --> 02:17:26,90 a gallon your cost to move per mile long haul barging remember there's 1709 02:17:26,91 --> 02:17:32,97 a short haul truck each and you're still have exposure to but it remains almost 1710 02:17:32,98 --> 02:17:38,59 flat literally almost flat and that's because it uses so much less fuel to move 1711 02:17:38,60 --> 02:17:45,44 goods compared to the other modes and that the flight. You know there's actually 1712 02:17:45,45 --> 02:17:49,61 one more. But but ours pencils out of fifty six cents 1713 02:17:49,62 --> 02:17:55,44 a mile this is the last one. If you can ship for less than you can ship further and 1714 02:17:55,45 --> 02:17:59,81 if you can ship further you have more growth potential better competitive edge and 1715 02:17:59,82 --> 02:18:06,08 grow your business in the edge of that's that's our position. If I had 1716 02:18:06,09 --> 02:18:10,52 a couple more that's a. Mess I could describe discuss 1717 02:18:10,53 --> 02:18:15,88 a few of the other points over to your answer and. Every. 1718 02:18:19,04 --> 02:18:25,67 I don't think anybody in the room doubts the price of fuel skin to go up and so but 1719 02:18:25,68 --> 02:18:32,40 right now it sounds like you are not in that advantageous for cost competitive 1720 02:18:32,41 --> 02:18:37,03 position to drive this in the immediate future so this seems like something that 1721 02:18:37,17 --> 02:18:40,85 the government should be funding I know we've made some moves in terms of the 1722 02:18:40,86 --> 02:18:47,51 Marine Highway proposition and construct is that essential for your vision here to 1723 02:18:47,52 --> 02:18:53,25 come to fruition to have some public private partnership I would say yes if we want 1724 02:18:53,26 --> 02:18:57,69 to do it in the near term I mean what I mean by that is our models are based the by 1725 02:18:57,84 --> 02:19:00,98 the by ability of the models themselves stand 1726 02:19:00,99 --> 02:19:03,25 a two dollars fifty to two dollars fifty cents 1727 02:19:03,26 --> 02:19:09,98 a gallon the business from its competitiveness goes more in the three range so 1728 02:19:10,76 --> 02:19:13,42 high three is do we run our model of four dollars 1729 02:19:13,43 --> 02:19:19,24 a gallon so you know I think everybody or at least I dissipate high fuel prices 1730 02:19:19,25 --> 02:19:25,43 coming back and on top of that I envision or expect another substantial feels like 1731 02:19:25,92 --> 02:19:29,32 coming out of the lack of oil investment Kerman as 1732 02:19:29,33 --> 02:19:34,68 a result of the low oil prices that are a result of this economic downturn in 1733 02:19:34,69 --> 02:19:38,31 a dance year question though there is offer to these like the Marine Highway 1734 02:19:38,32 --> 02:19:42,50 Program and more ads efforts and ten show other consensus with public agencies to 1735 02:19:42,51 --> 02:19:47,70 help get this type of mechanism off the ground due to its socio economic and 1736 02:19:47,71 --> 02:19:52,64 environmental benefits and we support that as well because what it really needs is 1737 02:19:52,96 --> 02:19:59,65 a spark in this type of economic climate. We feel our timeline is about two years 1738 02:19:59,69 --> 02:20:04,41 to the way the reason we say that is because. As most in the league you know I 1739 02:20:04,42 --> 02:20:08,37 mentioned even earlier today there are Koreans for sale and it doesn't take that 1740 02:20:08,38 --> 02:20:12,72 long to build one. We don't need any permits because there's properties per minute 1741 02:20:12,73 --> 02:20:16,50 for what we want to do there's no concerns there that we've that we've been told. 1742 02:20:17,58 --> 02:20:21,92 And we have the infrastructure in the dock strong so really what it comes down to 1743 02:20:21,93 --> 02:20:26,57 for us is capitalization and part of that is construction of barges that would 1744 02:20:26,58 --> 02:20:31,23 allow for our model the work as efficiently as it needs to in to that's part of the 1745 02:20:31,24 --> 02:20:35,32 viability you can't run a couple of free programs like this with 1746 02:20:35,33 --> 02:20:41,05 a six not barge he needed to own up. But those exist they're not there they're 1747 02:20:41,50 --> 02:20:44,95 there in the water operating today there's just not that many of them and and so 1748 02:20:44,96 --> 02:20:51,84 our program would need. A construction of one at least one or two we don't want to 1749 02:20:51,85 --> 02:20:58,18 do implement both programs and so part of that we feel like in the. Public health 1750 02:20:58,26 --> 02:21:02,48 through the Marine Highway Program and more as a first and a couple of even 1751 02:21:02,49 --> 02:21:06,21 a couple of stimulus off the stimulus opportunities that are on the table right now 1752 02:21:07,06 --> 02:21:13,03 that we're in the middle of everything that. You talked about five acres said how 1753 02:21:13,84 --> 02:21:20,20 Schneider dog. What's the maximum that you might think that this book you know this 1754 02:21:20,21 --> 02:21:26,16 trade vehicle or mechanism other words you know I'm coming around the corner. 1755 02:21:27,44 --> 02:21:31,13 Do we need the redwood dock for this or does this fit with existing infrastructure 1756 02:21:31,79 --> 02:21:36,99 to implement what I have there we can do with existing infrastructure no doubt and 1757 02:21:37,54 --> 02:21:40,96 you know we like to grow this business and we feel like we're in 1758 02:21:40,97 --> 02:21:46,35 a position where. The volumes exceeds the capacity that we're going to offer with 1759 02:21:46,36 --> 02:21:51,93 one barge in this community but we are you are tied to the rest of the Gulf to 1760 02:21:51,94 --> 02:21:56,03 program so in order for us to add another barge to service humble Bay We need to 1761 02:21:56,04 --> 02:22:01,52 show that you have that necessity on the coastal scale so it's really hard to 1762 02:22:01,53 --> 02:22:07,11 answer but I would like to vision the opportunity. This this program basically 1763 02:22:07,12 --> 02:22:10,45 revolves around one barge call a week or four times 1764 02:22:10,46 --> 02:22:13,31 a month and I would love to add a second and if we had 1765 02:22:13,32 --> 02:22:19,62 a second that may grow what's available and there's five pretty. Remains to be seen 1766 02:22:19,63 --> 02:22:24,30 on on how. Do you know all of the docs around here is 1767 02:22:24,31 --> 02:22:26,53 a little bit challenging because they're all with 1768 02:22:26,54 --> 02:22:28,53 a cost list all designed where there's 1769 02:22:28,54 --> 02:22:33,74 a key so that decreases the efficiency that I've talked to offer if it was sort of 1770 02:22:33,75 --> 02:22:38,34 a book as to how design I could to you know I could table that to sort of stuck out 1771 02:22:38,35 --> 02:22:42,53 into the channel because then you could load more efficiently all along the side of 1772 02:22:42,54 --> 02:22:46,46 the vessel as compared to having to pass or wait going up and down. 1773 02:22:50,00 --> 02:22:54,78 And I don't know is that. Young I mean it's a long answer to 1774 02:22:54,79 --> 02:23:01,77 a short question. Of how other questions from the committee and the. 1775 02:23:04,66 --> 02:23:05,39 New place. 1776 02:23:15,63 --> 02:23:21,43 Couple of articles that I've read over the past few months make me wonder whether 1777 02:23:21,88 --> 02:23:28,15 about the future of container shipping on the West Coast one is. They said that 1778 02:23:28,16 --> 02:23:28,66 there's going to be 1779 02:23:28,67 --> 02:23:34,64 a new passageway through the Panama Canal and that the East Coast ports are 1780 02:23:35,10 --> 02:23:40,68 expanding like gangbusters and in fact while the West Coast fourth of all taking 1781 02:23:40,69 --> 02:23:45,94 a dive they said the port of Savannah has gone up five percent in volume and they 1782 02:23:45,95 --> 02:23:48,75 said that it will be cheaper to ship 1783 02:23:48,76 --> 02:23:54,32 a container from China that's bound for the east coast through the Panama Canal and 1784 02:23:54,33 --> 02:23:58,97 broken at the East Coast port then the ship at the Long Beach and do the same thing 1785 02:23:59,11 --> 02:24:05,35 that's number one number two is whether the the model for globalization is in fact 1786 02:24:05,36 --> 02:24:12,16 changing with the rise in the price of fuel. Used to be. Economical 1787 02:24:12,50 --> 02:24:17,43 to ship Brazilian steel to China to make refrigerators shipped to Long Beach to 1788 02:24:17,44 --> 02:24:22,25 truck to Chicago and now perhaps they're building it in Long Beach and sending it 1789 02:24:22,26 --> 02:24:28,10 to Chicago so. These couple of articles you know make me wonder the viability of 1790 02:24:28,31 --> 02:24:29,90 whether there really is going to be 1791 02:24:30,37 --> 02:24:36,60 a substantial increase on the West Coast I don't know how to address this. But the 1792 02:24:36,61 --> 02:24:43,55 answer to. The globalization of industry is not going to change the 1793 02:24:43,68 --> 02:24:49,72 position of Savannah which will answer next is the savannah move Wal-Mart there is 1794 02:24:49,73 --> 02:24:56,43 it's one of its major hub D.C.'s and that created this huge surge in 1795 02:24:56,44 --> 02:25:02,61 terms of all water service verses land bridge service and land bridges be bringing 1796 02:25:02,62 --> 02:25:07,40 into West Coast for our railroad tickets somewhere it's always going to be cheaper 1797 02:25:08,21 --> 02:25:14,93 on the operator. And I doubt that the railroads will give that up either to bring 1798 02:25:14,94 --> 02:25:19,30 it into the West Coast because the cost of operating ships and the cost of 1799 02:25:19,31 --> 02:25:23,38 developing the ports in those areas to take 1800 02:25:23,39 --> 02:25:30,11 a ship from. Hong Kong. To New York. At 1801 02:25:30,18 --> 02:25:32,16 least six. 1802 02:25:37,33 --> 02:25:42,42 Billion. I doubt. 1803 02:25:48,59 --> 02:25:54,62 It will be and it's generally less time sensitive cargo but most. 1804 02:25:56,14 --> 02:26:02,25 Move. To move it and drop it. 1805 02:26:06,48 --> 02:26:12,77 And the other question was. Will have I think was on the weather the weather about 1806 02:26:12,83 --> 02:26:17,13 international and global manufacturing I think that trend will stay you're going to 1807 02:26:17,14 --> 02:26:23,00 have compressors made in Brazil they may be made now Africa they may be made in 1808 02:26:23,71 --> 02:26:26,64 some other area in the future but you're always going to have 1809 02:26:26,65 --> 02:26:32,06 a symbol in the United States Mexico and along our borders. No matter what the 1810 02:26:32,07 --> 02:26:36,71 components will come in I mean we have world cars today the example is the escape 1811 02:26:36,72 --> 02:26:38,03 Ford is really 1812 02:26:38,04 --> 02:26:43,57 a Brazilian World car so that kind of thing will continue you know for Brazil makes 1813 02:26:43,58 --> 02:26:46,72 the engines so that's the with and they move them all over so that will always 1814 02:26:46,73 --> 02:26:51,01 continue. When. 1815 02:26:53,91 --> 02:26:54,71 Is that you know 1816 02:26:54,72 --> 02:27:00,38 a pair of sneakers they cost one hundred fifty dollars but the shipping cost 1817 02:27:00,55 --> 02:27:05,21 literally from Asia is less than a dollar so it really takes quite 1818 02:27:05,22 --> 02:27:08,16 a bit of fuel rise to make 1819 02:27:08,17 --> 02:27:14,56 a difference or any kind of dent in that model and you'll see that you know what 1820 02:27:14,94 --> 02:27:19,57 Stephen talking about to me is just it's not as big of an impact when you're 1821 02:27:19,58 --> 02:27:25,08 talking the mass movements of mass transit as we never acquires math Negri with 1822 02:27:25,09 --> 02:27:30,58 Randy hands down there that you know in order to. Address 1823 02:27:30,59 --> 02:27:35,03 a mass transit mass goods transit model for humble Bay That means you're going to 1824 02:27:35,04 --> 02:27:39,99 move mass and that kind of gets to the I think one of the routes is that the 1825 02:27:40,00 --> 02:27:45,11 political question at this community has which is what level of mass and growth are 1826 02:27:45,12 --> 02:27:49,82 we willing to accept and then there's different viewpoints on that all over the 1827 02:27:49,83 --> 02:27:55,51 board and where is that what is that where is the consensus on that and then you 1828 02:27:55,55 --> 02:27:59,86 might be able to move forward but in you know that's there's really the big 1829 02:27:59,87 --> 02:28:04,98 question of what is growth what is mass in order to have mass transit you need mass 1830 02:28:05,57 --> 02:28:10,88 we don't have that. Question. 1831 02:28:14,50 --> 02:28:15,32 Thank you very much. 1832 02:28:26,29 --> 02:28:31,69 Well I had hoped to. Kind of get 1833 02:28:31,70 --> 02:28:37,41 a bottom line here but I think that's. We were exposed here to some. 1834 02:28:38,98 --> 02:28:44,40 Very very useful information I think in terms of understanding trade around the 1835 02:28:44,41 --> 02:28:51,17 shores of shipping and harbor infrastructure. And I guess 1836 02:28:51,55 --> 02:28:57,74 if there is no other. Questions or contributions from the committee. 1837 02:28:58,81 --> 02:29:04,94 If there is people into interested in helping with the next. Forum which we'll have 1838 02:29:04,98 --> 02:29:07,19 which is light industry if you could hang around 1839 02:29:07,20 --> 02:29:13,31 a little bit. That would be great and Rose actually since you work with peachy and 1840 02:29:13,32 --> 02:29:19,35 I've talked to. Call the endo and there is prospects for growth in light industry 1841 02:29:19,43 --> 02:29:26,37 for Wave Energy. If I could just talk to you so you could get back on this because 1842 02:29:26,38 --> 02:29:31,11 he has said that he would he would actually help us with. Projections from what 1843 02:29:31,12 --> 02:29:36,40 they're build on the flight into Earth both in the pilot phase and in the long so 1844 02:29:36,41 --> 02:29:42,58 if there are folks who want to help with the light industry sector please. Join me 1845 02:29:42,59 --> 02:29:49,50 here in the front there's no whether it's one one thing my hope is that you know 1846 02:29:49,51 --> 02:29:53,26 the parties that are involved here tonight really I really encourage them to come 1847 02:29:53,27 --> 02:29:57,37 back to the other forums because we're really looking for synergies between all of 1848 02:29:57,38 --> 02:30:02,79 these clusters and then Johnson was here. And I failed to acknowledge in my own 1849 02:30:02,80 --> 02:30:06,37 becomes fact. I'm.